Question:
My Buyer clients are considering allowing the Seller to stay until the day after closing. I suggested they talk to their lawyer but for some reason they never want to consult with their lawyer. Other than questions of insurance liability (if there’s a fire or flood, etc.) or damage, what are the other implications for the buyers if they let her overstay? Could it end up being a case that if she doesn’t go, they end up at the Landlord Tenant Board? I’ve never had this happen and I just want to ensure they are aware of all consequences. They exchanged emails when I was not in the room and she is asking them directly.
Answer:
- Close one day later.
- Or, you can have an extended closing arrangement, that is, the money today and vacant possession tomorrow.
Naturally, most of the time, nothing goes wrong, but when it does you do have disaster.
The issue here seems to be the private arrangement without legal assistance.
Could this particular Seller “go rogue” and claim that there was a tenancy in place. If so, that buys them nine months with the LTB and there was no provision to pay rent. So, that means it’s free!
Brian Madigan LL.B., Broker