Buyers Want to Move In Early

Q:  Marsha, in 10 days we are closing escrow on the sale of our house. The buyers have to be out of their house in four days. They’ve asked if we would consider allowing them to move in early. The buyers’ agent doesn’t see anything wrong with the idea. She has allowed early occupancy before and never had a problem. My agent, on the other hand, is adamantly against it. It’s been a really friendly and smooth escrow. I’m inclined to let them take possession early. What are your thoughts?

A:  My thought is no, no, and no! So the buyers’ agent never had a problem with letting buyers take early possession? That’s great. But the thing about problems is you don’t have them until you do. And then you have a problem. The buyers’ agent’s attitude is like saying “Why buy car insurance? I’ve never had an accident before.” Not allowing early occupancy before the close of escrow is your insurance against potential disaster. 

Buyers are likewise reluctant to allow sellers to remain in possession of their former home. It’s for the same reason sellers shouldn’t let buyers take early possession. Things go wrong. Once the property transfers to the new buyer, what is the status of the seller who remains in possession? What is the title of the buyer who moves in early and doesn’t own the property yet? Are they soon-to-be owners? Maybe. What if they decide they really don’t want the house? Are they still buyers, or are they now tenants or squatters? They’re definitely a nightmare. With their status uncertain, how do you remove them from your house, cancel escrow, and put your house back on the market?