Real Estate Ontario Should You Allow Buyer To Rent During Closing? - Real-Estate London, Toronto, Montreal, Vancouver, Canada buy house, sell house , rent a house

It's not uncommon for an investor to sell a house and have the buyer request the right to rent and occupy the property while the closing is being completed.

You're a bad guy if you refuse and often in hot water of you agree. Here are the potential problems with renting before closing:

1. Buyer is in the home for two months and then the potential lender decides the buyer can't qualify for the mortgage loan. Now that's bad news!

2. Buyer is in the home for two months... gets a bad case of buyer's remorse and wants out of the deal. Now that's bad news!

3. Buyer is in the home for two months and comes to the closing table with a long list of needed repairs he has discovered during residency. Now that's bad news!

4. Buyer is in the home for two months during which time he does serious damage to the property and then disappears. Now that's bad news!

Is there any good news? Well, you are getting rent money for those two or so months.

I would say that the investor comes out on the short end of that game. Let's agree that the only time you rent during closing is if you are in dire need of that rental income.

If you must rent then you must carefully prepare a lease agreement. No handshake deals allowed!

If the buyer/renter refuses to close the deal for any reason, the only way you can get them out of the property is if you have a rental agreement that gives you the right to evict. It must also be a short term lease, so there is no misunderstanding about the buyer/renter remaining in the property if the deal goes bad.

In the purchase agreement you must spell out exactly, in a dollar amount, what repairs or improvements you will pay for. The agreement should indicate the buyer has had an inspection period and is buying subject to your limits on repairs and costs... now and in the future. If legitimate defects are found in the property during the rental period you can negotiate a solution.

You must collect sufficient security deposit to cover rent and potential damage the renter/buyer might inflict upon the property.

Look, if for some reason you feel you must accommodate the buyer during the closing period? pay for a motel room. Chances are it will be far cheaper in the long rund.

London Ontario Real Estate Information

TORONTO , May 17, 2012 /CNW/ - The Ontario Real Estate Association (OREA) applauds proposed legislation introduced today at Queen's Park that, if passed, would facilitate the use of electronic agreements ...

BTB Real Estate Investment Trust announces the acquisition of an office building in Ottawa, Ontario

TORONTO, ONTARIO-- - Allied Properties REIT announced today that the Trustees of the REIT have declared a distribution of $0.11 per unit for the month of May, 2012, representing $1.32 per unit on an annualized basis. The distribution will be payable on June 15, 2012, to unitholders of record as at May ...

Pure Industrial Real Estate Trust Announces Agreement to Acquire Two Fully Leased Industrial Properties for $19.5 Million and Closing of Previously Announced $7.28 Million Transaction

TORONTO, ONTARIO-- - Allied Properties REIT announced today that it has entered into an agreement to purchase the following property for $61.75 million: Address Total Office Retail Parking GLA GLA GLA Spaces ---------------------------------------------------------------------------- Lang Tannery ...

TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust today announced its May 2012 monthly distribution in the amount of 12.42 cents per unit . The May distribution will be payable on June 14, 2012 to Unitholders of record May 31, 2012.CREIT is a real estate investment trust focused on accumulating ...

TORONTO, ONTARIO-- - Calloway Real Estate Investment Trust is pleased to report strong results for the first quarter ended March 31, 2012.Highlights:-- Maintained portfolio occupancy rate at the 99.0% level for the ninth sequential quarter. -- Funds from operations increased by 14.4% to $54.6 million and 5.1% to $0.434 on a per unit basis compared to the same period in 2011 ...

TORONTO, ONTARIO-- - RioCan Real Estate Investment Trust today announced a distribution of 11.5 cents per unit for the month of May. The distribution will be payable on June 7, 2012 to unitholders of record ...

TORONTO, ONTARIO-- - Canadian Real Estate Investment Trust announced it has acquired an additional 25% interest in certain components of Dartmouth Crossing Shopping Centre located in Dartmouth, Nova Scotia, ...

TORONTO, ONTARIO-- - InnVest Real Estate Investment Trust announced today that a distribution of $0.0333 per stapled unit, payable on June 15, 2012, has been declared to the holders of record as at the close of business May 31, 2012. The distribution is $0.0333 per unit of InnVest Real Estate Investment ...

Real Estate Information | Canada Foreclosure Listings | How To Buy Middle-class Homes Starting Below $100 Each | Real Estate & Tax Deed Investing | Easily And Quickly Become A Successful Real Estate Agent | Best Selling Real Estate Program | Mortgage Secrets | Avoid Foreclosure | London Jobs

Should You Allow Buyer To Rent During Closing?

London Ontario Real Estate Information