Possession is the last step in the home buying process, where the buyer takes over control of the home that has been purchased. The keys are given to the buyer and the seller will no longer have a right to be in the home.

In some cases the seller might ask for permission to retain the real estate for a time after the closing. As the buyer, you can approve or disapprove the buyer's request, but before making your decision, there are a few things to consider.

When the Seller Asks for a Delay
Sometimes just before closing, a seller may ask the buyer for additional time in order to take care of clearing out of the house, or to clean up other business on the move. While such a request may seem to be reasonable, and it's very natural to want to be accommodating, be very careful. If the buyer concedes to allow the seller to stay beyond closing, then it is essential that the holdover occupants be required to pay rent for any additional days, and that part of the contract has to be documented in an agreement.

There must be a definite limit placed on the time the seller can stay in the property, and it needs to be in writing. An agreement setting forth the details of the after-closing possession can be provided by the attorney or, in jurisdictions where attorneys are not necessarily part of real estate transactions, by the escrow officer.

As an alternative to renting, if the seller announces at closing or immediately before that he or she needs to stay in the home longer, it is usually a good idea to delay closing on the home until the seller can clear out.

Why is Seller Possession Following Closing a Problem?
As a buyer, once you buy a property, it belongs to you and it is your responsibility. If the seller, your tenant, accidentally causes a fire that damages the house, it is your responsibility because you are the owner. The renter/seller will have no accountability for the loss unless it is detailed in the after-closing possession agreement.

Sellers who retain possession of the real estate after closing are less motivated to take care of the property and make needed repairs. After all, if it is no longer their property because there was a legal transfer, it will be all too easy for them to realize that what you bought was the property in the condition as it was at closing. Any changes to that condition after that moment cannot affect the completed sale. In other words, they are off the hook for taking care of anything.

Liability for Nuisance Problems
Whatever damage that occurs to the home after the closing accrues to the buyer, regardless of who is on the premises. So if the pipes spring a leak or a new hole appears in the door, you are the one that will have to pay out of pocket for the entire cost of the repair.

A frequent problem with letting the seller retaining possession of the home after closing is that items that should remain with the home, such as the window coverings or air conditioning units, can vanish between the closing and the time that the buyer actually takes possession. Even in this case, the buyer is responsible for the missing items.

When you are buyer, you assume a responsibility that goes with your investment. It is safest to stick with possession at closing, or to delay the closing until the previous owner has gotten out from the property and can relinquish the keys.

This article was provided through the ultimate Louisville real estate experts of Colorado, Automated Homefinder.