Early Move-in Risks Fall Disproportionately on Seller

The standard definition of chutzpah is killing your parents, then throwing yourself on the mercy of the court because you’re an orphan.

So, what’s the real estate version (or, at least one example)?

A Buyer who delays the closing not once but three times, then threatens to walk if the Seller doesn’t allow them to move in early (they had contractors lined up to do work).

While there is such a thing as a “Move-In Agreement,” the risks fall preponderantly on the Seller.*

Which is why it is incumbent upon a Buyer who insists on that option to make it worth the Seller’s while (who is still entitled to say “no”) — along with agreeing to procure their own insurance and to indemnify the Seller for any losses. 

*A partial list of risks:   the Seller doesn’t close and the Seller needs to evict them; the Buyer’s contractor(s) damage the premises; the Buyer’s contractors are injured on the premises; the home sustains weather damage before closing; or the Buyer discovers (creates?) issues with the home’s condition and won’t close unless the purchase price is reduced.

About the author

Ross Kaplan has 19+ years experience selling real estate all over the Twin Cities. He is also a 12-time consecutive "Super Real Estate Agent," as determined by Mpls. - St. Paul Magazine and Twin Cities Business Magazine. Prior to becoming a Realtor, Ross was an attorney (corporate law), CPA, and entrepreneur. He holds an economics degree from Stanford.

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