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	W.R. Max Bendel Bio | Email

What should you do if your homebuyer asks to move in before closing? In most cases, avoid the situation. The potential for problems is enormous, even if you have a prepossession agreement.

For example, if the house or its contents are damaged, there could be a legal battle to determine who pays. And what if someone is injured on the property? You also could face a lengthy eviction process if the mortgage falls through.

The only time to consider an early move-in is if there is no other solution and the sale depends on it. If you decide to take this bumpy road, be sure you have a prepossession agreement. Here are some of the issues the agreement should cover:

• The buyer must have a mortgage commitment. There’s no deal without one.
• Limit the early live-in time.
• Add a prepossession agreement rider to the sales contract that details seller and buyer responsibilities.
• The buyer must have their own fire, accident, and possibly flood insurance during the early possession.
• Spell out who is responsible for problems such as appliance breakdowns, pipes breaking, or a leaky roof.
• The agreement should detail what happens if there is no closing, when the buyer is to leave, plus a monetary penalty for each day the buyer stays past the deadline.
• Establish that this is not a landlord/tenant relationship in any way.
• No subleasing arrangements by the buyer should be allowed before closing.
• The buyer must comply with all zoning laws and other ordinances.
• It must clearly state that your responsibility and liability ends when the buyer moves in.

You should also consider retaining an experienced real estate attorney to help you write the agreement.

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