01/06/2023
SELLERS: SHOULD YOU GRANT EARLY OR PRIOR POSSESSION OF A PROPERTY TO A BUYER (WHAT ARE THE PROS AND CONS)?
Possible situations for early possession include:
Availability: The seller agrees to let the buyer access to the property prior to settlement even though it is already unoccupied.
Convenience: The buyer wants to move in as soon as possible so that they have more time to begin planning their move or finish home renovation tasks on their current house before beginning their new chapter in their new home.
The buyer could wish to move in as soon as possible if they have already sold and settled their prior house and have nowhere to dwell.
Pros
1. Reduced carrying costs: By allowing the buyer to move in early, the seller can minimize their ongoing expenses associated with the property. This includes costs such as utilities, maintenance, and insurance, which the buyer would assume during their occupancy period.
2. Increased buyer commitment: Allowing early occupancy can strengthen the buyer's commitment to the property. By providing them with an opportunity to settle in and experience the property first-hand, it may solidify their decision to proceed with the purchase. This can reduce the likelihood of the buyer backing out of the deal before settlement.
Cons
1. Lack of control and inconvenience: Allowing early occupancy means relinquishing some control over the property before the sale is finalized. The seller may find it inconvenient if they need to access the property for inspections, repairs, or other purposes during the occupancy period. It can disrupt the seller's plans and potentially cause inconvenience or delays.
2. Financing and legal complications: Allowing early occupancy can complicate the financial and legal aspects of the transaction. If the buyer encounters difficulties securing financing or if legal issues arise during the occupancy period, the seller may experience delays in finalizing the sale or face additional legal complications.
