Delayed Possession Date

(Ontario)

Question:

How do you approach the issue of closing early but renting to seller for two months (something that would ensure they actually do leave on xx date)?

Answer:

While it seems initially attractive to prepare a simple 2 month Lease this provides the Seller with additional rights as a Tenant.

The Seller as a Tenant cannot agree in advance at the time the Lease is sigend to vacate on a certain date. So, the preferred approach would be to close first with vacant possession to follow in two months. Obviously the property insurer needs to be aware of this arrangement.

It is essential to eliminate the rights that would accrue to the Seller/Tenant under the Residential Tenancies Act.

Brian Madigan LL.B., Broker

www.OntarioRealEstateSource.com