I have had some experience with this, most of the time it works out well however I also have a horror story where the boyfriend of the seller refused to leave the home then did as significant amount of damage to the home....I always try to prepare clients that are considering this with best and worse case scenarios. Post occupancy can also have an impact on mortgages and insurance, so make sure that everyone is on the same page. Here are some tips from the article:
Ailion says it's more common to charge rent that roughly covers the carry costs (mortgage, utilities, condo or homeowners' association fees, etc.) for the new homeowner. And if the seller stays beyond the agreed upon occupancy date, the agreement might charge a daily rate of, say, 150 percent of the daily rate for each extra day, incentivizing the previous owners to move out.
To avoid delays with possession, Acquafredda suggests that buyers considering a post-closing possession understand the sellers' situation.
Ailion says buyers and sellers need to be comfortable with a little uncertainty, and the longer the timeline before the new buyer takes possession, the more uncertainty. "Both parties are taking some risk that it will work out the way they planned," he says. "People's circumstances may change over that time."
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