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Irwin Law
Irwin Law, Lawyer
Category: Real Estate Law
Satisfied Customers: 7310
Experience:  Lawyer- Broker 30+years - foreclosure, short sale, liens, title attorney.
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Purchaser of my condo, whom my realtor said was "pre-approved",

Customer Question

Purchaser of my condo, whom my realtor said was "pre-approved", ended up not being pre-approved and we are now into a third addendum with a third commitment closing date. My realtor advised me to allow the buyer to be a rental tenant, which the buyer/tenant is "supposedly" now residing in my property (we are going into to the second month). I reside in Virginia and my property is in Florida and, due to monetary constraints, NEED desperately to close on this property. What are my rights/options?
Submitted: 1 year ago.
Category: Real Estate Law
Expert:  Irwin Law replied 1 year ago.
If I understand you correctly, the Realtor suggests that you let this buyer, who has not been able to get mortgage approval yet, reside in the home as a tenant. This is called pre-closing possession, and is considered a high-risk venture by most Realtors, especially when there is no loan approval yet. An agreement for pre-closing possession should be in writing and signed by both parties. It should contain a specific closing date, and a "drop dead" provision which specifies that if the closing is not held by that date, the contract is void. Usually, a purchaser in that position must pay a substantial upfront sum to the seller which the seller keeps as rent. It may or may not be credited against the purchase price. That's subject to negotiation. I will be around for follow-up questions on and off today and tomorrow.Please don't forget to enter a rating by clicking on one of the five boxes at the top of this reply. We are not employees of Just Answer, and only receive credit for assisting you when the rating is positive. AND THANKS FOR USING JUST ANSWER.

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