Seller wants to stay past closing date... how much to charge?

Be very careful in granting an extension, try to reschedule the closing date rather than closing and renting back. Renting my affect the validity of your property and liability insurance. If you allow the person to stay have a written agreement with a date certain to vacate the premises with a stiff and growing penalty for failure to vacate on said date plus cost of enforcement.

I bought my present farm in Oct 2004 and leased back to the seller until 6/15/05. About June 1, 05 we needed to put a horse in barn and was refused access. The seller was not ready to move on 6/15 and asked for more time. Fortunately, my attorney had put in the lease a provision that it cold not be extended so we forced the tenant to leave.

In Washington, sellers can remain in the home for up to 3 days after closing.

Typically a seller remaining in a home 1 week or more after closing would entitle the new buyer to rent.

Rent could be determined on a "per diem" basis. Your monthly loan payment divided by 30 or 31 days & that is the amount the seller would have to pay for each day they remain in possession of the home.

If the sale has not yet closed, implement this in escrow, so that a certain amount of the seller's proceeds (an amount equal to your loan payment) are held back at closing & then released to you. She can get a refund if she is out sooner. This is less risky than getting a check from the seller which might not be good after they have moved out & you have no way of tracking them down.

I would never recommend that you allow the person in the house AFTER settlement. They have YOUR house and YOUR MONEY - especially if she has been a pain.

I personally would only allow her to stay past the closing date on the following continues:

1. Settlement will occur, but her profit is held by the settlement in escrow until she has moved out and you inspect the home to make sure that it's in good order and that all the items are still there (light fixture, appliances, etc).

2. You charge her the per day rate of your mortgage. If your TOTAL mortgage payment is $1,500 a month, you charge her $50 a day; and you get this amount at settlement, upfront. If you have additional expenses because she didn't move out, add them to the total cost and prorate per day.

3. you have an agreement in writing that she will move out by a set date (WRITE "TIME IS OF THE ESSENCE"). And get the "rent" up front at settlement.

4. If she is still in the house after the agreed date, then increase the rent by 3x. And this money is paid out of the "profit" the settlement company is holding.

5. When the new payment (#4) starts, you start court process to kick her out.

There may not be any problems, but plan ahead.

There isn't any reason for a buyer to pay the seller any per diem charge if the delay is caused by the lender or seller . I would have never agreed to a per diem charge addendem for any reason. Since this is a foreclosure the buyer is in the driver's seat, not the seller. Ask the realtor's broker about the extension and addendum.

Rent it for the going monthly rate. If she only stays a few days and not an entire month then divide that rate by 30 days and multiply by the number of days she stayed. If it is a hinderence to you then you have the right to tell her no. You also need to state in your contract how many days you are willing to let her stay, because sometimes people will take advantage of that and stay for too long and it's harder to get them out if you don't have a move out date agreed upon in writing. Your realtor should know what to do.

Your realtor should help with that. Find out what the home could rent for and divide that by 30 for a per day rate. Usually a few dollars are added onto that amount as well due to the inconvenience factor.

In Ohio the buyer does not get occupancy until 30 days after closing unless other arrangements have been made ahead of time.

If the seller was such a pain then you can demand occupancy at closing, you will legally own it then!

It would normally be what your daily mortgage payment is. Take the monthly payment and divide by the number of days in the month.

Most buyers will have a payment higher than the property would rent for, so don't go by what rents are like in the area.

This is actually fairly common.

I would start with how much the mortgage is going to be, you can pro-rate for the # of days, then add into it any inconviences you will be suffering, like do you need to stay in a hotel b/c of it, or did you have to pay a penalty to reschedule movers etc.

How much would your house lease for if you rented it to someone? Use that as a starting point.