Debbie Reynolds, Your Dedicated Clarksville TN Real Estate Agent (Platinum Properties)

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Praful Thakkar
LAER Realty Partners - Andover, MA
Andover, MA: Andover Luxury Homes For Sale

Debbie Reynolds rate lock is an issue if it takes longer than 90 days for closing. Rent back is the best idea - do not need to wait for closing for 90 days.

However, there may be different guidelines - some lenders do not allow more than 2 months for rent back. Please check.

Feb 28, 2015 11:44 AM
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Dipti Thakkar
LAER Realty Partners - Andover, MA
On a team with Praful Thakkar

In MA, I think the law allows 60 days only..

Jul 08, 2018 10:21 PM
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Larry Johnston
Broker, Friends & Neighbors Real Estate and Elkhart County Subdivisions, LLC - Elkhart, IN
Broker,Friends & Neighbors Real Estate, Elkhart,IN

That sounds like the best solution to me.

Feb 28, 2015 12:07 PM
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Ron Marshall
Marshall Enterprises - Saint Michael, MN
Birdhouse Builder Extraordinaire

What happens, as did in our case when we bought our house, that we wanted to move in on the day of closing?

Feb 28, 2015 09:40 AM
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Bob Crane
Woodland Management Service / Woodland Real Estate, Keller Williams Fox Cities - Stevens Point, WI
Forestland Experts! 715-204-9671

It depends on the situation, in todays buyers mkt we are seeing these often.

Nov 19, 2019 10:19 PM
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Gabe Sanders
Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL
Stuart Florida Real Estate

My first choice would be to delay the closing.

May 11, 2018 05:44 AM
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Robert May
Robert W May - Lethbridge Real Estate - Lethbridge, AB
Real estate consulting

im just clicking back through some of the old Q and A's, looks like this one got lots of good answers.

Mar 01, 2016 01:57 PM
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Debbie Reynolds
Platinum Properties - Clarksville, TN
Your Dedicated Clarksville TN Real Estate Agent

I appreciate all the input. It has such risk to wait for the buyer to close but also much risk if the seller rents back. A conundrum.

Mar 01, 2015 11:46 AM
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Cheryl Ritchie
RE/MAX Leading Edge www.GoldenResults.com - Huntingtown, MD
Southern Maryland 301-980-7566

90 days sounds like an awfully long rent back. What is the reason for that length of time? 

Mar 01, 2015 11:27 AM
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Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

I've done that, Debbie, when a buyer wanted to lock in his financing and rates. It's like a lot of what we do--find solutions to problems to get houses to the closing table.

Mar 01, 2015 11:04 AM
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

There's some pretty spirited discussions here. I would probably do it. 

Mar 01, 2015 09:40 AM
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Don Sabinske
Don Sabinske, Sabinske & Associates Inc. - Zimmerman, MN
Sabinske & Associates Inc.

I would try to avoid a rent back if possible.  Most people want possession on the day of closing and have scheduled their lives around that.

Mar 01, 2015 07:56 AM
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Alan Grizzle
Chestatee Real Estate - Dahlonega, GA
Full Time Realtor, Lifelong Resident of Dahlonega

If the buyer is getting a loan you need to see if the lender will allow that first. If it is being bought as a primary residence the lender probably will not allow more than a few days. 

Mar 01, 2015 07:33 AM
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Cindy Davis
SD Home Source Realty - San Diego, CA

Carla Muss-Jacobs, Principal Broker/Owner ...I am 100% clear of my responsibilities as a licensed broker in California. What I am unclear on is why you think it's ok to scold and attac me. I've been under the perhaps false impression that this is a plae for the spirited sharing of ideas. I have read others who feel similarly about rent backs, yet I don't see you attacking them. 

Mar 01, 2015 06:50 AM
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Roy Kelley
Realty Group Referrals - Gaithersburg, MD

If I were a buyer, I would never agree to a rent back arrangement. It is too difficult to evict tenants when they default.

Mar 01, 2015 06:41 AM
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Andrew Scherer
Approved Mortgage Group - Doylestown, PA
Real Estate Representation At It's Finest

Rent-backs are sticky situations and ones that should be avoided at all costs.  Another option for these (especially in a renter moving into their newly purchased home) is to have the seller pay for an additional month rent for the buyer.

Mar 01, 2015 06:32 AM
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Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Debbie -- interesting question and spirited comments.

The answer depends on a couple of different factors and it becomes a part of the negotiation scenario.  It could limit the buyer pool of a property and that's typically not ideal.  As some comments have suggested, there can be both lender, insurance and legal concerns but those can typically be worked out.   

As Carla Muss-Jacobs, Principal Broker/Owner commented and I summarize -- we are not the principals in the transaction so our duty is try to get the  client what they want as long as it is legal and ethical.  

Mar 01, 2015 06:02 AM
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Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

We have rent back agreements already prepared in my local market.  And Jeff Pearl there is a maximum for a rent back for owner-occupied purchases.  It's 90 days in my local market and standard of practice.  Tey are not risky if done correctly.  A knowledgable, experienced real estate agent can . . . and does . . . use them.  It's not up to USE to NOT inform our clients about an option available to them that is in their best interests.  It's up to the clients if they want to OFFER / ACCEPT a rent-back as part of the terms and conditions.  

Mar 01, 2015 04:26 AM
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Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

Cindy Davis . . . it's not about what you like. It's about what works for your clients.  You are a fiduciary and therefore have a duty to your clients.  You don't NOT suggest something to your client if it will benefit them.  I you don't like rent back then you shouldn't take a listing, i.e., represent the seller, if that would be in their best interest and you're not comfortable.  Geez . . .  

Mar 01, 2015 04:21 AM
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Carla Muss-Jacobs, RETIRED
RETIRED / State License is Inactive - Portland, OR

There are reasons the seller can not give possession, I'd assume.  And with those reasons then it becomes a negotiable consideration.  While one solution would be to have a 90-day escrow where, at the close, buyer is entitled to possession. but there might be issues with buyer's interest rates, etc.  Or, in the alternative to a 90-day escrow, the buyer and seller negotiatate a rent-back. These things are part of the overall purchase and sale, which are often protracted in nature, but workable.  I've done plenty of rent-backs and have actually used this provision to make my clients offer more attractive to the sellers.

Mar 01, 2015 04:06 AM
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Jayne Esposito
Coldwell Banker - Morgan Hill, CA
SRES, GREEN

I agree 100% with Praful Thakkar.  It would behoove the buyers to agree in light of rate lock.  

Mar 01, 2015 12:19 AM
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Jeff Pearl
RE/MAX Distinctive / LIC in VA - Lovettsville, VA
Full Service Full Time Realtor

Rent backs are risky, and most lenders here limit rent backs to 2 months max. There can be legal problems if rent back it too long because it can be looked at as an investment property instead of a primary residence.

Mar 01, 2015 12:16 AM
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Jeanne Gregory
RE/MAX Southwest - Sugar Land, TX
The most important home I sell is YOURS!

That's a long time to leaseback.  A lot can go wrong in 90 days.

 

 

Mar 01, 2015 12:07 AM
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Bruce Swedal
Denver, CO
Denver Real Estate

Part of due dilligence is letting the seller know all of their options.

Feb 28, 2015 11:34 PM
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Gita Bantwal
RE/MAX Centre Realtors - Warwick, PA
REALTOR,ABR,CRS,SRES,GRI - Bucks County & Philadel

I have done it in the past with my clients but these days lenders are strict so buyers will have to check with their lender as well.

Feb 28, 2015 10:27 PM
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Richard Robibero, e-Pro, ABR, SRS
Panorama R.E. Limited - Toronto, ON
Selling Your Home as if it were My Own!

I'm with Cindy Davis . Luckily this doesn't come up often but I try to discourgae such things but I also understand that it happens. Looks like a rent-back is the best thing...

Feb 28, 2015 08:48 PM
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Dianne Goode
Raleigh Cary Realty - Raleigh, NC
Realtor/Broker

Hi Debbie.  If I were representing the seller, I'd want it closed sooner rather than later.  If I were representing the buyer, it would depend on their circumstances.

Feb 28, 2015 08:25 PM
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Sham Reddy CRS
H E R Realty, Dayton, OH - Dayton, OH
CRS

Always! Unless it is part of the negotiation.  The rent should be at least equal to the total mortgage payment of the buyers

Feb 28, 2015 07:50 PM
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Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

It depends upon what is usual in your market....they are severely limiting the number of buyers here if they do that....and should consider their alternatives.

Feb 28, 2015 07:34 PM
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Joe Petrowsky
Mortgage Consultant, Right Trac Financial Group, Inc. NMLS # 2709 - Manchester, CT
Your Mortgage Consultant for Life

Good morning Debbie. A lease back is fine if the agreement is properly drafted, a large enough security deposit and the buyers have the ability to stay in their current housing.

Feb 28, 2015 07:30 PM
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Kathleen Luiten
Resort and Second-Home Specialist - Princeville, HI
Kauai Luxury Ocean Home Sales

If the buyer wants to move in, yes. But only with the rental agreement handled outside of the purchase contract. 

Feb 28, 2015 06:18 PM
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Eric Valente
Calabasas, CA
Eric

It would be the best solution. But sometimes, a buyer has a reason to have a longer escrow as well. Good luck! 

Feb 28, 2015 10:42 AM
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Evelyn Johnston
Friends & Neighbors Real Estate - Elkhart, IN
The People You Know, Like and Trust!

Yes, absolutley! Why would they not want to move for three months?  I would rather push out the closing.

Feb 28, 2015 09:59 AM
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Pete Xavier
Investments to Luxury - Pacific Palisades, CA
Outstanding Agent Referrals-Nationwide

If all else fails, yes, a rent back with a hefty security deposit.

Feb 28, 2015 09:42 AM
Rainmaker
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Cindy Davis
SD Home Source Realty - San Diego, CA

I personally wouldn't suggest it since I don't like rent backs. I think the legalities of liability can get very tricky. I would probably wait awhile before taking the listing.

Feb 28, 2015 09:35 AM