One of the things that’s been coming up for both buyers and sellers because of how the market is, sellers wanting to stay in the house for a little bit after escrow closes. The reason why this comes up is because sellers are trying to buy and sell their house, right? So, they need to sell their house in order to buy their house. But what happens is, people don’t necessarily want to move twice, right? So, that is kind of hard. Then what they want to do is, they want to stay in their house for a little bit of time after escrow closes. There are 2 ways this can be done but do know that this is something that the sellers are going to have to negotiate with the buyers. Maybe the buyers are a little bit uncomfortable with this but it’s really not a big deal because it does get totally documented in all the real estate documents.
First is called the Seller in Possession which is for sellers who are going to be in their house for like 29 days or less. Then there is another one where it’s called the Residential East Hampshire Sale where the sellers can stay in longer than 29 days. So, it’s for 30 days or more.
The difference between the two is that, sellers will get tenants rights in the home after 30 days. That means staying in the house after close of escrow for 29 days or less. Sellers do not get tenants rights. If they stay in for 30 days or more, they do. So, that’s a huge difference. A deposit is collected in both instances. Just like when you rent an apartment, you have to put a security deposit. Same thing for either of these scenarios.
So, the first way is seller repossession 29 days or less and no tenants rights are given. Not a big deal. So, the second one is the residential lease after sale and again, this is for 30 days or more and in this case, sellers do get tenants rights. The way it works is, the form is called the residential lease after sale. It is a formal lease form that is filled out and it’s more like a tenant landlord relationship. So, the lease is totally filled out. The seller has to take care of the property in the same way. Everything should be as it was during the sale but what it does is, sellers get a little bit more time to stay in the house if they’re worried that, you know, they may not get a replacement home in time. So, that’s it. Those are the two ways. There’s a lot that goes into it to think about to negotiate, has to be agreed upon, there’s rent and stuff to figure out. Just something else to know.
Reach out to me and I can help walk you through what it would look like to sell your home and buy your new one at the same time.
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I’m a Top Producing Realtor® in the OAKLAND / BERKELEY / EAST BAY AREA. I’ve been in the San Francisco East Bay Area since I came up to do my undergrad at UC Berkeley (a long time ago!), with a short stint at UC Davis while getting my Master’s. I take my duties as a Realtor® and Fiduciary very seriously, I enjoy educating my sellers and buyers along the way. Putting People, Before Profit.
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