Should a seller let the buyer occupy the home before Closing? As a general rule…No! There are so many ways a transaction can go wrong in the last few days, and especially if there is a contingency involved. Each situation is different but a few rules should be followed:
- Try to make sure the need is warranted and not just a wish for the buyers convenience.
- The buyer is to get renters insurance to cover their items put into the home or garage.
- Buyer should sign a document stating that buyer assumes liability for any damage to the home resulting from the buyers things being moved into the home prior to closing.
- Buyer needs to get a “Renters Policy or a Rider on an existing policy” in order to have Insurance coverage on their personal property. Seller’s policy would stay in place covering the home until closing. Remember a Buyer cannot bind Insurance on a home they don’t own!
- Consider this: After all is said and done, a Buyer’s loan may be denied, or some kind of catastrophe could cause the sale to be cancelled. Now the Buyer is in the home and will likely need to be evicted. Seller has moved out and incurred moving expenses and may have to move back in. It’s never done until it’s done!