Selling first investment house - Posted by Joan - CA

Posted by dealmaker on August 03, 2007 at 18:24:59:

No f’ng way! It’s a rental house, if they want to rent it, they can rent it. They can’t waive liability for third parties, and technically probably not for themselves either. If they get hurt badly enough their insurance carrier is going to come back on you.

Tell the agent that after talking to your insurance carrier, and your attorney that you just can’t let them do it. That should prevent any further discussion.


Selling first investment house - Posted by Joan - CA

Posted by Joan - CA on August 03, 2007 at 15:25:12:

Hi, I need some advice from the experienced investors here. We have just sold our first investment house (out of state, Idaho). It is relatively new construction, empty, sold “as is” with an unfinished bonus room. It will close during the first week of September.

The agent just contacted us and asked if the buyers could have access to the house to finish the bonus room so that it will be ready when they move in. They would also like to store some boxes in the garage. The agent is proposing that they sign a waiver stating that we, the sellers, are not responsible for loss of any personal property and also that if they finish the bonus room and the deal falls through for any reason, we are not responsible for any of their costs or labor. The agent lives in the neighborhood and has offered to be the one to hold the key and let them in each time they access the house.

My question is, what angle might we be overlooking here - liability for personal injury should they have an accident on the property? We have renter’s insurance still in effect, but technically they won’t be renters.

Thanks in advance for any advice.


Re: Selling first investment house - Posted by Joan - CA

Posted by Joan - CA on August 05, 2007 at 21:16:27:

Thanks, everyone, for the input. You’ve really helped clarify the situation, and now we know how to proceed!

I don’t like pre-settlement occupancies - Posted by Real Dan

Posted by Real Dan on August 04, 2007 at 08:07:49:

  1. The buyers could damage the property, accitentally or on purpose.

  2. The buyers could decide to do some changes, don’t like this light fixture, don’t like this wall where is located etc.

  3. The buyers could discover something real or imagined that makes them back out of the deal.

  4. If I’m the seller I would not do it unless there was every i dotted and t crossed and I had a boatload deposit, non-refundable to cover any contingency inlcuding damage or defaulting on contract.

Re: Selling first investment house - Posted by Ken

Posted by Ken on August 04, 2007 at 06:36:58:

NO WAY. Once they are in they will find things they do not like and expect you to fix it.If they do work in the bonus room you have no way to control quality and it will be sub par

It’s not why you can’t, it’s how you can - Posted by Wayne-NC

Posted by Wayne-NC on August 04, 2007 at 06:02:54:

Don’t pass up an income producing opportunity. Why not rent the house on a good month to month lease (with all its’ built in protections)? Take a deposit plus rent blah, blah, yadda, yadda, etc. You know the story. Look for solutions to answer the legitmate concerns listed below. This is a start.

Re: Selling first investment house - Posted by Rich-CA

Posted by Rich-CA on August 03, 2007 at 18:54:51:

No. The buyer should have access for inspections but moving in can be all sorts of problems, especially if they can’t close at the end. With the current upheavals in the mortgage market (I closed on a property today because the lender could not extend the rate lock because the Alt-A programs were all pulled and after today there would be no loan programs remotely priced what I was getting). If their financing falls through, and many sales contracts specify a max interest rate, you may end up in litigation as they try to recover their costs in your house.