5 Reasons Home Sellers Should Not Allow Early Occupancy – In rare cases, buyers are allowed to move into a home before the deal is closed. This can be asked by the buyer to haul in their belongings and start using the home, which is helpful if the property closing day has already come and gone.

The seller might agree to this in order to receive some incentives like rent from the buyer until the day of closing. However, there are certain risks associated with this scenario, which is a reason not to agree to such deals. Below are some reasons associated with such deals.

The Buyer is Unable to Close5 Reasons Home Sellers Should Not Allow Early Occupancy

allowing a buyer to move into a home to allow the buyer to close the deal. Or this is what is expected to happen in an estate transaction. However, during the stay, the buyer faces some financial problems or finds fault in the home. Whatever the reason might be, the seller already has a situation to formally evict the buyer from the home. This might become a difficult situation consuming time and cost, resulting in relisting of the home.

Mechanic Lien

It could be a more complicated scenario if the buyer has made some changes to the home and the seller might be expected to pay or the buyer might fill a mechanic lien against your home. When the buyer fills out a mechanic’s lien, the home won’t be allowed for reenlistment until the money is paid.

Repair and Maintenance Responsibilities May Be Blurry

As the owner of the home, you are expected to repair and maintain the home as required. With the buyer in the home would make the work more difficult, especially if the damages are caused by the buyer. However, a separate lease agreement can be made in order to tackle such a situation if it occurs. This agreement should be done before the buyer moves into the home.

Insurance Policies May Not Provide Coverage

Home insurance is taken by homeowners. However, the buyer’s policy is only considered effective after taking full possession of the home. For example, if something happens to a contractor hired by the buyer while on the property, who will be held liable?

Since the names on the title haven’t changed, insurance and liabilities might get messy for the buyer and the seller’s insurance policy might get compromised.

Buyers Are at Risk Too

Buyers who move into a home before the deal is closed are also at risk. For instance, if there is any title yet to be resolved, it might pose a problem for the buyer. The buyer will have to deal with a lot of situations such as judgement, lien and other things that can taint the title. And there will be less negotiating power for the buyer if an issue is revealed after they move into the home.

The Bottom Line

The problems associated with early possessions are real and not worth the risk. It is advisable you avoid getting caught up in such situations. The buyer should only be allowed to take possession of the home when the deal is closed and the title is legally changed.


PMD Realty Group has been providing professional home buyer and seller real estate representation since 2013. Our company values are service, honesty, integrity and work ethic. We always strive to exceed our client’s expectations. give us a call at 602.399.9233 if we can be of service in GoodyearLitchfield ParkBuckeyeAvondale, Sun CitySurprise, Peoria and Glendale in the Phoenix West Valley.

We list and sell homes, property and real estate throughout the Phoenix Valley including Phoenix, Scottsdale, Palm Valley, Pebble Creek, Wigwam, Verrado, Estrella Mountain Ranch, Tempe, Mesa, Cave Creek, Carefree, Chandler, Apache Junction, Gold Canyon, Maricopa, Gilbert & Maricopa County.

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Goodyear Pebble Creek home for sale Front of home Sunset photo
Goodyear Pebble Creek home for sale Front of home Sunset photo

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