Real Estate - Get In The Know
Selling
Related Articles
Rent Your House Back After It's Sold
What if you’re ready to sell your house but have no where to go. Perhaps you’re having a new home built and don’t know exactly when it will be completed. Sometimes it’s helpful to sell your home before you really want to move. There is a way you can sell your home so you’re sure of the funds available, but continue to live in your old home until you’re ready to move. This is called the rent back strategy.
This works particularly well with an investor who is buying the property with the sole purpose of renting it out. You have the ability to accept an offer that includes this type of clause over an offer of more money.
The agreement covering the situation states the length of time the seller will remain. It can be done with a specific date named or wording that allows the seller to remain up to a specific date with the possibility of moving sooner or later.
The amount can be a fixed figure paid out of the proceeds of settlement or a monthly amount, or a daily amount. It is usually, but not always, tied to the amount of the mortgage payment under the buyer’s new loan. Sometimes there is a deposit against damage, sometimes not. There is usually a clause saying the seller will hold the buyer harmless for any damage to himself or his property which occurs after the sale is consummated and before the seller moves.
The attorney who draws up your contract offer can create such an agreement. If you’re using online forms, you should be able to find one for this situation. If you’re working with a real estate broker, he or she can handle it for you. P