What to Do When a Buyer Wants Access to the Property Before Closing

In the majority of home sales, the buyer takes possession of the house after the closing appointment. Until the closing date, they are not allowed to reside in the home, move any belongings inside, or even take over the keys to the property.

However, there are times when a buyer will ask for early access to the home. They might have already closed on their home sale or their rental lease could be up, leaving them temporarily homeless. 

There are significant risks to the seller if you let your buyer move in early. A lot can go wrong between their move-in date and the closing appointment. Learn more if your buyer wants access to the property before closing so you can protect yourself.

Common Reasons Buyer Might Want Access to the Property Before Closing

Here are a few reasons a buyer might give for wanting to move in early. Each of these reasons benefits the buyer while increasing the risks of the seller.

• They need to store their personal belongings: your buyer might not have a home at the moment if they are in between sales or their lease is up. Moving in early is often preferred over paying for storage. 
• They want to start on repairs or renovations: they might want to start working on the house so it is move-in ready after the closing date. 
• They want to measure the house for furniture or appliances: some buyers might only want a few hours in the home to measure the space and figure out where their furniture will go. 
• They don’t understand why they shouldn’t move into a vacant house: If your house is unoccupied, they might not understand the risk you take in letting them move in early. 

The most common reason buyers have for moving in early is that they don’t want to continue renting or live in temporary housing. Early access allows them to start renovations and move in sooner, closing a chapter of instability in their lives.

Potential Risks of Granting Early Access

Buyers can benefit from moving into the homes they are trying to buy early on, but sellers take on several potential risks by allowing them to do so.

Here are a few things that can go wrong if you let your buyers move in, or even access your home unsupervised without a real estate agent. 

You Are Still Liable for Your Home

When you let people move into your home, they are technically guests that you are responsible for unless you draft a lease agreement. You are still liable for the state of the home and any injuries or issues that arise on the property. 

For example, if your buyer falls down the stairs and breaks their back, you could be expected to cover their medical bills through your home insurance policy. You would have to fill a claim that you otherwise wouldn’t have needed if the house had remained vacant. This could affect your rates in the future, causing you to pay more for home insurance. 

During this time, you are also still responsible for the state of the house. If the air conditioner breaks or there is a plumbing emergency, you will have to pay for those repairs.

Financing and Closing Delays Could Delay or Jeopardize the Sale

The home sale process isn’t complete until all of the closing paperwork is signed. A lot can go wrong when a house is under contract, even if the home inspection is good and the mortgage lender is confident the loan will be approved. There is always a possibility that a loan issue arises and the buyer cannot get the finances they need. Even minor mortgage underwriting problems can push back the closing and cause confusion if the buyer moves into the house.  

In a worst-case scenario, you may need to evict your buyer if they move in but the sale doesn’t go through. You will have to clean up any messes they leave behind and restart the listing and showing processes. Even if there are minor delays, you will have to deal with a buyer living in your house – and potentially not paying rent during this time. 

Refusing access is safer and easier for sellers. If there is a closing delay or the sale falls through, it shouldn’t affect the state of your home in any way. 

You Might Have to Pay to Undo Unwanted Improvements

Buyers oftentimes want to gain early access to a property so they can start working on renovations and repairs. If this is the case with your buyer, you are taking a big risk as a seller. If the sale falls through, you could be stuck with a home that has unwanted improvements or half-finished projects. 

For example, if your buyer has plans to replace the flooring, they might ask for early access to tear out the carpet. If the home purchase doesn’t go through, you are left with a house without any flooring because the project was only partially done before the deal crashed. You could end up paying for new floors to prepare the home for relisting or could take a hit on the listing price because of the state of the flooring. 

You could even lose out if the buyer finishes upgrades before the deal goes through. If they throw out your old refrigerator and replace it with a new model, then have to move out, they could take the new appliance with them and leave you without a fridge.

The Buyers May Request More Repairs

The more time your buyer spends on your property, the more they will be able to explore the home to identify issues and flaws. Small problems they overlooked during the inspection process might become major issues that the buyer wants you to address. 

This is frustrating for the homeowner who wants to sell the home and move on without investing in other repairs and upgrades. The last thing you want is a call from your real estate agent because the buyer is trying to renegotiate the contract. 

After the inspection period ends, the buyer doesn’t need to see the house until the final walkthrough. They will have plenty of time to explore the home after closing.  

You Could Experience Breach of Contract Issues

When your buyer moves into your home and signs an early access contract, you need to trust that they will keep up with their end of the agreement. You have to believe that they will pay rent on time, avoid starting any renovation projects, and follow through with the home purchase. If your buyer backs out of the sale or breaks the early access agreement, you could have a difficult court case on your hands. 

You may need to sue your buyer for damaging your home and causing significant financial distress. Not many people are eager to file court cases and start lawsuits, especially if they are leaving one area and trying to move to a different state or region.

While everyone wants to think that other people have good intentions and will act ethically, you need to protect yourself in case you encounter a potential buyer who damages your home and tries to get out of their legal obligations.

The Seller May Have to Move Out Sooner

Sellers often receive requests for early buyer possession when the house is vacant. It makes sense that the buyer wants to move in sooner because nothing needs to be removed or cleaned. However, some buyers request early access to properties that sellers currently reside in. This can put stress on you and your family because you have to move out sooner than your expected closing appointment. 

If you decide to grant buyer possession early, make sure you are compensated fairly. Having to pack faster, move to a new location sooner, and potentially live in temporary housing because of your buyer is stressful and expensive. Most homeowners still living in their properties want more time to move out, not less. Don’t let your buyer bully you into moving out before closing. 

How to Manage Early Access Requests

If your buyer requests early access to the property and you are considering letting them move in, there are steps you can take to protect yourself and your house for as long as you still own it. Here’s what you need to do if you want to stay safe.

Consult with Legal and Real Estate Professionals

The first step is to meet with a real estate attorney to review the legal implications of letting a buyer move in before the closing paperwork is signed. Laws change from one state to the next, which means you might have certain protections and legal options in place if you grant your buyer early access. 

Your attorney will also help you draft a lease agreement, which protects your rights and your home. This agreement will state exactly what your buyer can and cannot do when living in your house. They can do whatever they want after the home is sold, but until the closing appointment, they are still living under your roof. 

Ask your Realtor or real estate agency for attorney recommendations. They can connect you with someone who provides clear advice that is relevant to your situation. 

Draft an Early Access Agreement

One document your attorney or Realtor might draft is an early access agreement. This grants the buyer access to the property with conditions that protect the seller. If the buyer agrees to these terms, they can move in. If the buyer violates these terms, the seller will have a legal document they can reference. This will be useful in court proceedings to hold the buyer accountable. 

Here are a few key details to include in an early access agreement. Many of the elements will be similar to the terms of an apartment lease. 

• Duration of access. List the date that the buyer can move into the home and when they are expected to take over as owners. This section should also have clauses for what happens if the closing is pushed back, extending the rental period. 
• Permitted activities. State exactly what your buyers can and cannot do while they are renting your home. You do not want them to start major renovation projects until the purchase agreement is signed at closing. 
• Responsibility for damages. Explain that the buyer is responsible for any damages to the home while they are living there. For example, they cannot ask you to repair an appliance they broke as a condition of purchasing the home. 
• Insurance requirements. Just like any other tenant, consider asking your buyer to take out renters insurance to protect themselves and their property. 
• Compensation. Decide whether you want your buyer to submit a security deposit. List the rental rate for the period that the buyer will take over the property. 

The buyer’s agent should walk them through this contract and confirm that they agree with each section. This will ensure both parties understand what they are agreeing to when they sign the document.

Hire a Real Estate Agent Who Will Be Your Advocate

Your Realtor is supposed to act in your best interests and prevent your buyer from taking more than they should. The root of real estate involves two parties reaching a fair agreement they are both happy with. Your buyer can move in early as long as you are compensated and they sign a rental agreement. Even then, you need to accept the risk you are taking by letting the future owner of the home take over early. 

To find a Realtor who can help you understand your options, turn to FastExpert. We have a vast database of agents with extensive experience. You can find Realtors who you enjoy working with on personal and professional levels.

Try FastExpert today and hire a real estate professional who makes you excited for the future.