Expert: Karyn Foley - 5/27/2006

Question
Hi Karyn,

I am a first time home buyer and was hoping you would be able to provide some information.  The sellers of the house my fianse and I are purchasing have requested to sleep in the house after closing because the they cannot move into the house they are buying until the next day.  My fianse thinks I am being paranoid but I am concerned that by allowing them to sleep in the house after closing has occurred may subject me to liability for any injuries they should suffer.  In addition, I am also concerned that allowing them to remain would affect my home owners insurance.  I do not want to be unpleasent and not grant the sellers a favor for no reason, but my concerns (if at all true) would outweigh the small amount of money they save from not staying in a hotel.  Any information you can provide would be greatly appreciated.  

Justin

Answer
Dear Justin:  You are not being paranoid, but you are being wise, circumspect and 100% correct.  DO NOT LET THE SELLERS REMAIN IN THE HOME ONE SECOND AFTER CLOSING!!!!!  Your insurance would indeed be impacted as you would need to get a renter's policy.  You would also be held accountable should there be any injuries.  Do not concern yourself with being selfish, as you have everything to lose and nothing to gain, and should anything go amiss you could be asking (begging!) for problems.  They should impose themselves on friends or relatives, or just camp out or stay in a cheap motel for the night.  Also, have you thought about what you do in the event that they want to stay longer and what you would have to do to eventually get them out if something happens to dlay their getting into their own home?  If you need an excuse, simply tell them that you checked with your attorney and you were advised that your answer is going to be NO!  In fact, if there is real worry on your part, see what you can do about changing the terms of your agreement so that it states that the sellers are to vacate the property 24 hours before closing.  I guarantee you that if you had asked them if you could move into the property a day before closing while they still owned it that they would say no to you also.  It is a bad scenario either way.  Once they no longer have a legal ownership they should be out out out out out.  Let me know what happens!  Karyn Foley