AS Barbara Todaro and Fred Griffin said, use an attorney to ensure all the necessary paperwork is signed.

I am very familiar with it. FIrst if i was representing a buyer, i would have them stay away from it unless the seller signed a lease and put a very large sum of money in escroe to guarantee they will move out, that they will leave the home in as good of a condition as the buyer looked at it. 

Yes, I have. So far, only one bust out of dozens!

Yes... but rarely see them done in my market. I do one a year at most and never for longer than 60 days as most mortgage loans require a buyer to move into their home within 60 days of closing.

yes, for a short period of time, if the buyer has a holdover but does not want to lose a rate...they close early and the seller rents back for a month +/- at a per diem until their next home is ready to close..... both parties have attorneys....

   Use an Attorney to draft the documents.  You can run into problems.

Yes, I've done these on some purchases.  They've worked out well for me, though they did end up lasting longer than initially expected (due to seller medical issues) and the rentback needed to be renewed.

We do not market it specifically but use it often if seller needs extra time to move out.

Happens from time to time. Very common in commercial.

It does not happen very often in our area.

Yes, we had that on a deal last year. The property was a short sale with a fast, firm deadline to close by  & the buyers closed on the property & then the attorneys wrote up paperwork to allow the seller to live there an additional couple weeks so that they could plan their move better. Good people on both sides, it worked out great. 

Yes, this came up in a class on Win Win Negotiating today in Green Bay.

With the LOW Inventory issues we are seeing this as a more common entity.  I had one recently and it worked out perfectly for both the buyer and seller ... a win/win.

Builder's models are great for seller leaseback. Also in commercial it's quite common at least for a short period of time. Sometimes it could take an awful long time to move big heavy machines and such. And nobody wants to start moving until the deal's done.
Also, the seller can strategically sell and leaseback to free up cash.

The buyer loves this because the seller is 'in', requiring no repairs buildout or TIs, no deferred maintenance issues, no negotiating nickel and dime stuff . . . full rents paid from the get. It can be profitable for all.

Try to avoid seller rent backs or buyers with early move ins. Past experience is that they are trouble. 

I have seen the term used in a different manner.  This "term" shows up in various markets. Be careful. 

I know an investor that uses this approach with distressed sellers. It works many times giving him the advantage over other investors and agents.

It's done all the time & I'm not sure why that is a hot sell? Maybe take your time to find a new home as a seller? Here in IL seller would put up 1.5% in escrow & pay buyers PITI for the month. It's not any deal as most times the buyer has a higher mortgage.

Lease-buy-backs have been around in the corporate world for a long time. Have not heard of it in residential situations. On the coprorate side, there are tax advantages. I would need to think this through more thoroughly, but at first blush, it sounds like for sellers, this would carry a big risk of being kicked out at some point; the document would have to be crafted very carefully. 

This is not a typical situation in our market.

Used to be much more popular than it is today.

Mary Yonkers nailed this one!

I am aware and I have seen some really bad occurances because of it

Yes, our market has been hot for a while so sellers can ask for this. It does however limit the available pool of buyers, depending on the terms they may be buying under. For example if your request a rent back longer than 60 days, a lender will may decline as most require their buyer to take possession by then.

Get the terms in writing up front. Verify the seller's plan to move by the end of the term or you may be an unwitting landlord. 

 Seller rent back is not a new or uncommon phenomenon. It is often used in conjunction with a seller who has not found or closed on a new place to live. Very aggressive buyers in our multiple offer market will offer the seller a FREE rent back period.

By the way, lenders also have a say in rent backs. That is a different story.

Old news .... really old news.  Rent backs have been a hot trend for years. 

There are many ways to skin the Real Estate cat....

Yes, it may work in some markets better than in others. A

We have a post closing agreement after they close, and the buyer and seller can negotiate up to 60 days in the home.

I have seen it but not in some time...

I have had a situation where that happened and the seller had to rent back for a few weeks due to a health condition. I had a lawyer help draw up the paper work and it worked out great. But would hesitate to recommend that. 

PropertyMinder (AccelerAgent) I have seen this over the years, but it doesn't occur very often. I don't see this as a very good marketing technique with little ROI.

I have done a couple of these.  I always ask a lawyer to help draw up the details.

no

PropertyMinder (AccelerAgent) - yes and have closed few such deals.

Yes, I do them all the time.