Dear Monica: I am selling my house and want to stay for three months after close of escrow. My agent said that if a buyer is getting a loan, their lender would not allow more than a 60 day rentback. Can I still ask for this? Raymond D.
Dear Raymond: Your agent is correct that there is a 60 day limit on how long the seller may remain in possession of a property after escrow closes using the standard form for this purpose. If you wish to stay longer, you may need an actual lease agreement for a certain length of time. As a way around this 60-day limit, some sellers and their buyers sign a separate agreement allowing seller to stay longer, but this could constitute lender fraud if done without the lender’s knowledge to circumvent the rule.
The best solution is to ask the lender how best to write the contract that would align with their rules. Of you could delay close of escrow until 60 days before you want to move.