We're buying a house and need to move very soon, could we rent the new place from the owner before we buy it?

Question

I'm having a baby due September 1st, and we're moving to a new town and I want my daughter to be at school for the start of the new school term too... Although we've had an offer accepted on a house, and the owner is moving to rented accomodation (so there's no chain), we're concerned that legal things are so slow that we might not be in the new property before September...

Does anyone know of any pros/cons in offering to rent the house we're buying from the owner until the house is legally owned by us? I haven't heard of this being done, but it would be great to be able to move and settle in to our new place before the baby arrives!

Any tips?

Answer 1

Is it possible to stay with freinds/relations for a short while

Answer 2

Ask the Agent or ask YOUR Agent to ask the Seller's Agent to ask the Seller about the possibility of you and the Seller signing a lease for the property.

If the Seller moved or is moving to a rental property, your rent to the Seller should help the Seller to defray some of the rent on the Seller's new residence.

As with most other situations, [I was told this many years ago] you should always keep these thoughts in mind: #1] The VERY WORST answer you'll get is "No". As I was told, "No" means not right now."

#2] People ARE NOT mind-readers. THE ONLY stupid question is the question a person DOESN'T ask.

It could work to be a win-win-win situation for everyone.
How? WIN #1) You get the property before closing/settlement/escrow;
WIN #2) the Seller gets rent for a property which could otherwise be vacant until closing/settlement/escrow;
WIN #3) the Agent and Agent's office gets a little more income for preparing the lease and managing the property.

This is our family slogan: "Every Good Wish to You & Yours!" From the bottom of my heart I wish this for you, your family and your friends.

VTY,
Ron B

Answer 3

There is no discrimination here. A person who has pets is not a protected class unless they are disabled and have a service pet. You may have the best pets in the world (heck, what parents have ugly or horrible kids?) but, the landlord doesn't want to deal with it. They don't have to. And that is the bottom line. You are not going to sway the opinion of a landlord who has a strict no pet policy. They have heard it all before from others who had perfect pets who did nothing wrong, and were left with a mess. Look for a place that accepts pets or a landlord that can be bribed by a large pet deposit or a monthly fee tacked onto the rent for having pets.

Answer 4

It is possible to rent the property whilst you buy it - you will have to discuss this with the owner but if he is agreement that is fine. You will need to sign a tenancy agreement of course so you both have the usual rights. I arrange mortgages for a living and have just done a mortgage on this identical basis. In terms of ownership, you will not legally own the property until you have completed on the mortgage.

p.s you are not legally bound to buy the property just because you are renting it but I would suggest that you have your valuation done on the house before you rent - that's where a sale usually falls down - that way, if there are works to be done etc, you can negotiate costs etc before you are living there - that puts you in a stronger position and avoids any awkwardness.

Answer 5

I did the very same thing that you want to do. I spoke to the owner and we agreed a price, (all this was done without paperwork) I made it very clear to him that if the sale didn't complete, that I would move back to my old house. I also promised him that I wouldn't allow the people who were buying my house to have the keys before completion. It's very important that the solicitors aren't told of the arrangements, as they (for obvious reasons) are totally against the idea. When I went to collect the keys from the estate agents, they phoned to check with the owner as they said: 'this is most irregular'. It turned out that the sale on the house did complete at about 3.30 in the afternoon, I'd been living in the house for two weeks.

Answer 6

That choice is up to the selles. As a real estate broker, I always recommend to sellers that they not rent the premises to the buyers in advance. Why ? Because when buyers get to settle into the premises, they immediately start to pick apart every little defect and then want the seller to fix everything before they agree to close.

However, if your sellers are in agreement with your wishes, it is certainly legal and can be done.

Good luck.

Answer 7

Yes i sold a house in Cornwall to someone who was being given 6 months rental payment from the education authority while he looked for a house,he came to rent my house and liked it so much he wanted to buy it.He needed to move in straght away in conjunction with his new job but wanted to take advantage of the rental and then purchase after 6 months,so a 6 months shorthold tennancy agreement was drawn up and in the agreement was a legal contract of sale- of my house whereby he was legaly commited to buy at the end of the 6 months period---hope this helps ,you will need to exchange contracts when you move in and insure the property.The vendor should be delighted as he has a secure sale and the extra rental income

Answer 8

As long as you and the owner can come to terms, there should be no problem renting until the sale goes through. Good Luck!!!

Answer 9

It is known as a lease with option to buy, is done all the time.
tips: Be honest and upfront but get an attorney.
Wear sunscreen.

Answer 10

Try to discuss with the lessor about your proposal and be included in the Lease Contract.

Answer 11

Sign the contract.