Should I Let Buyers Rent Condo for Weekend Before Closing

Introduction to the Issue

Q: I’m about to sell our condo, and the new buyers want to rent it for the weekend before closing. Have you ever heard of this? Should I say yes, or is this a reason for them to cancel the sale if they don’t like staying there? — Doug
A: While it is not uncommon for buyers to ask for early access to a property before closing, you should approach it with caution.

Understanding the Risks

Sometimes, buyers want to move in a few days early or, as in your case, rent the condo for a weekend before the sale is finalized.
Although this might seem like a simple request, there are significant risks and considerations to keep in mind.
First and foremost, remember that until the closing is finalized, you are still the legal owner of the condo.
If you allow the buyers to stay in the property before the sale is complete, you are essentially becoming their landlord, even if only for a short period.
This can lead to legal issues if something goes wrong. For example, if the buyers damage the property, refuse to leave, or find something they dislike, you could end up in a challenging situation.
In some cases, early occupancy can even give buyers leverage to renegotiate the deal or back out entirely.

Considering a Written Agreement

If you are thinking about saying yes, make sure you have a written agreement that clearly states the terms of their stay. This should include the dates, who is responsible for damage or repairs, any rent you are charging, and a security deposit.
Be sure to check with your closing attorney before agreeing to anything. They can help you understand the risks and draft an agreement that protects your interests.

On the other hand, if you choose to say no, it is not likely to be a dealbreaker for most buyers.
You can politely explain that your insurance doesn’t cover renters or that your attorney advised against it.
Most buyers will understand that early occupancy is uncommon and that you are simply following best practices.

Making an Informed Decision

While I understand that it can be difficult to say no, especially if you are getting along with your buyer, I have found that pre-occupancy agreements can often lead to unnecessary problems.
Board-certified real estate lawyer Gary Singer writes about industry legal matters and the housing market. To ask him a question, email him at gary@garysingerlaw.com, or go to SunSentinel.com/askpro.

Conclusion

In conclusion, allowing buyers to rent your condo for the weekend before closing can pose significant risks, including legal issues and potential dealbreakers. It is essential to approach this situation with caution and consider seeking advice from a closing attorney. While it may seem like a simple request, it is crucial to prioritize protecting your interests and ensuring a smooth transaction.

FAQs

Q: What are the risks of allowing buyers to rent my condo before closing?

A: The risks include legal issues, potential damage to the property, and the possibility of buyers renegotiating the deal or backing out entirely.

Q: Do I need a written agreement if I allow buyers to rent my condo before closing?

A: Yes, it is highly recommended to have a written agreement that clearly states the terms of their stay, including dates, responsibilities, and any rent or security deposit.

Q: Can I say no to the buyer’s request to rent my condo before closing?

A: Yes, you can politely decline the request, explaining that your insurance doesn’t cover renters or that your attorney advised against it. This is unlikely to be a dealbreaker for most buyers.