Is it wise to enter into a pre-occupancy as the seller of a house?
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Is it wise to enter into a pre-occupancy as the seller of a house?
My husband and I are relocating to a different state. Our current house is listed
for sale with a realtor. Our house has been listed for 4 months and the price
range it is in makes it a buyers market. Actually there are not a lot of buyers
in this price range. We have been approach to consider a pre-occupancy with a potential buyer. Everything I am reading about this type of transaction makes me think we should avoid it. What is your opinion?
Asked on September 21, 2018 under Real Estate Law, Kansas
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 5 years ago | Contributor
Avoid it. You run the risks of:
1) The buyer defaulting on the purchase but not moving out; you then having to bring legal action to remove them.
2) The buyer damaging the house while there, then moving out and/or the deal falling through, leaving you with a damaged home.
3) The buyer doing something which results in a lien or other cloud on your title (e.g. hiring a contractor to do something, then not paying it, and the contractor putting a lien on the house).
If the buyer can afford the home now, just sell it to them. If they can't afford it now, don't assume they will be able to buy it in the future.
You are better off just reducing the price to move the home.
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