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- November 11, 2011 at 1:47 am #233825
Can you* advise me a better way to deal with seller rent back?
The seller of our future house would like to rent back the house for less than 30 days. The sellers agent initiated a Purchase Agreement Addendum which have the following things specified:
•Term of the rental period
•Amount of rent per day
•Amount of security deposit
•Whether the security deposit will be held in escrow or released to the buyer at closing
•Late charges, if any, pertaining to non-sufficient funds and / or payments that are received late outside of escrow
•Who pays for which utilities
•Right of buyer to enter property
•Seller’s duties to maintain the property
•Lease assignment and subletting rights
•Seller’s obligations upon surrender
•Insurance for seller’s personal items
However, we still feel that we are not well protected enough after we saw a few articles online about the liability issues. Our biggest concern is, in case the worst scenario happens and the house is destroyed, who’s going to pay for the replacement/rebuild cost. So we request to add a few clauses including the following:
– penalty for overstay
– request for final rental walk-through
– add a clause saying “Seller shall be obligated to make all repairs, replacements and/or rebuild to the property so as to maintain the property in the same condition as on the terms provided in the Agreement.” We were told that seller is not likely to purchase renter’s insurance due to the short term, but how can we protect ourselves in case of worst scenarios that the deposit can’t cover? *I was told that*our home insurance may not cover that since the property is rent to others.
So, do you think our request is reasonable? Anything else that you would suggest to add?
Do you think the standard addendum itself can satisfy our needs? What other documents can we use and hopefully that would not make things too complicated?
Thanks in advance!
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