Q. We’ve sold our house. We have 30 days rent back. We would like to ask for 4-5 months rent back extension due to the fact we have not bought a house yet. Our agent (seller’s agent) told us that the bank wont allow the buyers to rent out more than 30 days because this will ruin the buyers loan. But lots of our friends had stayed at their houses for 4-6 months after they closed the escrow. We were told that it can be done as long as both buyers and sellers agree. The bank should not be an issue.
Can seller rent back more than 30 days after close the escrow by law?
If there is a contract for rent back (and there should be) the buyer’s lender is privvy to it and can apply its own rules (each lender – potentially different rules). I have seen some lenders only allow a 30 day rent back and I have seen others only allow a 60 day rent back. Nothing more.
In past times, it was not as big of an issue but things have changed and if the borrower signed a loan document that states it is a primary residence, then the lender wants to see them occupy the property as their primary residence.
With all that said, you don’t know until you ask. If the buyer’s are in agreement, write it up and see if the lender says anything. I am not sure where you are in the process but if the loan is already approved it may delay the timeline for closing.
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