Can a buyer list a home with a property management company before closing?
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Can a buyer list a home with a property management company before closing?
I am selling my home. It is currently under contract, and the buyer indicated they intend to rent it out. They stated they have already hired a property management company and requested to have access to the property prior
to closing for the property management company to get a renter in ASAP. We told them no. We still have 4 weeks until closing. Is it even legal for them to list our home with the property management company prior to them actually owning the property? It doesn’t feel right to us.
Asked on July 6, 2018 under Real Estate Law, Colorado
Answers:
SJZ, Member, New York Bar / FreeAdvice Contributing Attorney
Answered 6 years ago | Contributor
It is legal for them to list or advertise, to try to drum up interest or even get a renter signed in advance, BUT is in no way binding on you and regardless of any lease or agreement they might sign with a renter, the renter cannot get into the home any earlier than the closing, when the buyer becomes the owner. People can advertise or contract in advance, on the expcation or anticipation of being able to provide something. So what they are doing is legal, but doesn't affect anything as far as you are concerned: this is no different legally from them booking their mover long in advance or sending out invitations for a house warming party prior to closing. Any promises they make, lease they sign, etc. does NOT bind or obligate you--only them, the ones who made it. If they sign a lease for a certain date and they can't provide possession on that date because the closing was delayed, *they* could be liable to their disappointed tenant, but you would have no liability. Or of they sign a lease and the sale entirely falls through (e.g. they can't get financing), again, they could be liable, but you have no obligation to the renter.
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