I have had a property under contract since mid-September. The buyer has just divorced and they have been working on the sharing of their real estate, etc. We have extended the colony twice, and now it seems that this can only happen after the holidays, because the lender needs more time to take it all back. It was, of course, a frustrating experience for all concerned. The buyer now asks if we are considering a pre-billing contract. She wants to move in before the holidays and is willing to pay extra money and pay for all the benefits. Has anyone ever worked with this arrangement? What are the pros and cons? Conversely, if the buyer authorizes the seller to occupy the property after the billing, the buyer is the owner of the property, but not the occupant and the seller is the occupier, but not the owner. Each party must ensure that its insurance policies provide appropriate insurance coverage for their status, both before and after the count. If you are dealing with a post-billing contract, you will certainly want the agreement to at least allow the 15-hour occupancy fee to double or triple if the seller/tenant is late. However, depending on the circumstances of this case, the purchaser/lessor may, in addition to the statute of limitations and other legal costs, be faced with considerable additional costs related to the application of the contract, which may not be covered by a simple doubling or even a tripling of the daily occupancy tax. For example, the additional cost of temporary accommodation, the cost of storing furniture and the cost of a double move may be significant depending on the circumstances. Although the seller remains the owner of the house during pre-occupancy by the buyer, the seller is no longer the occupant of the house and the seller`s policy cannot cover the property for the duration of the buyer`s deposit.
A call to the seller`s insurance agent can resolve the issue. How long does the occupation last and what is the deposit and the amount of deposit that the owner of the establishment receives? Obviously, the larger the deposit, the more secure the arrangement will be for the homeowner. It is also important to ensure that buyers and sellers have the right type of hazard and liability insurance for the property during occupancy. Who bears the risk of loss if the property is damaged or destroyed by fire or other disaster during the period of occupation? The buyer who is taken into possession before the count cannot rely on the owner`s policy that begins on the day of the billing. The buyer is not yet the owner of the house. The seller is authorized to inspect the property at regular intervals until billing, reasonable time and reasonable time.