Profile picture for FTBuyer5

Buyer to pay rent during extended escrow

Hi,

I'm a first time buyer and just was notified by my realtor that our offer on a home was accepted.  The only problem is that the seller was a cash investor who just purcahsed the property and now needs 90 days before he can sell the property to me.  Per my realtor, in order to get the property, I need to rent it for the next three months from the seller.  The rent will not go towards anything, purchase price, closing costs, etc...  This is supposed to be to cover the sellers carrying costs for having to keep escrow open.

My question is...  am I going to get screwed?  Is this normal?  Any suggestions?  

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July 24 2013 - Santa Clarita
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Answers (4)

Best Answer
Profile picture for wetdawgs
Don't do it!  

Do NOT move in until the sale is closing and you can move into YOUR property.    

If you need to bail from the contract with this flipper, do so, but he is indeed trying to put the burden on your shoulders.





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July 24 2013
Great question and what a decision you have to make!

 I have never had a client due a rent back on a flip before.  If everything is in writing and the realtor has their broker look over it than you should be ok.

Ultimately to be on the safe side I would look for another home.

I hope that helps.  I know when you fall in love with a home it's hard to get it out of your head but you will find another beautiful home!  I promise!
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September 17 2013
Hi 
FTBuyer5!!!  It's been done, but leaves an uneasy feeling.  Don't you think?
 Consult a Real Estate Lawyer with a copy of your contract.
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July 25 2013
Profile picture for hpvanc
I would post this question in the Mortgage section. Your biggest risk is not getting the loan due to the stringent rules on flipped properties. The "seller" is trying to skirt the rules, which always increases your risk. Meanwhile the "seller" has a captive tenant paying their costs.
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July 24 2013
 
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