HomeBlogCan I Sell My House to a Cash Buyer and Live in it as a Tenant?

Can I Sell My House to a Cash Buyer and Live in it as a Tenant?

Sell House to Cash Buyer and Live in it as a Tenant

Please note, Mortgage Broker Store has Discontinued the “Sell and Rent Back” Program Due to Market Conditions. For more information, please visit our latest post here: Discontinuation of Our “Sell and Rent Back” Program Due to Market Conditions

Selling your house to a cash home buyer can solve financial issues. You could be facing a power of sale or foreclosure in Toronto, Etobicoke, Markham, or Oshawa. This process is straightforward with no commissions to real estate agents or mortgages. What’s more, the seller doesn’t need to wonder if the buyer is going to back out at the last second.

One of the other bonuses is certain companies allow sellers to stay in the property they’ve just sold as tenants. This is called the Sell and Rent Back option and it’s becoming increasingly popular. It’s a great option for people who need to sell fast but don’t have a new address to move to right away.

Here are a few ways these agreements benefit both parties in a cash homebuyer transaction.

  • The seller doesn’t need to pay some of the expenses they had previously. For example, property insurance, property taxes, and the mortgage are the responsibility of the new owner.
  • The seller saves on any moving expenses they would have otherwise had to pay. Plus, they don’t need to move immediately. This option works well for previous owners who were overwhelmed by repair bills or a job loss. It gives them time to regroup financially before they need to make another move.
  • Cash home buyers enjoy this process as well. When they buy a home, cottage, or condo, they increase their income through a rental agreement.
  • The sellers also enjoy this option because there are no expenses or hidden fees.

Generally, this is an excellent idea for people who have a good amount of equity put away. It works very well for those who also have plans to move to another space like a condo eventually.

Interested in learning more?


People selling their homes quickly are often facing financial and other issues that are forcing them to move. Many of these people don’t have a lot of extra money and a new address to call home. Quite often, the sell and rent back options allow people to sell the property and live in it for up to three years or even longer.

The amount of rent they pay is determined by the amount of equity they have and the selling price.

Cash home buyer companies make offers including a reduction when they plan on offering the sell and rent back option. The sale has some details and customized terms that allow the seller to live in the home rent-free for a certain amount of time. Some previous homeowners can live on the property they once owned for up to three years or even longer. Plus, the whole process is a great way to sell a cottage fast.

Jonathan Alphonso from the Mortgage Broker Store explains the details and how his company uses this feature.

“Quite often we will ask for a discount like 50,000 dollars. ,” he says.  “ If that works, we will add a term so the seller can live in the property rent-free for one whole year.”

Mortgage Broker Store

Alphonso adds on monthly payments after that adding that the arrangements work for both parties.

A Winning Sell and Rent Back Scenario

Here’s an example of how that could work. It’s a fast process.

A homeowner sells for a negotiated price that both parties agree on. The cash home buyer has some wiggle room if the price is right to not charge any property tax or mortgage for several years. In those circumstances, the company can adjust the amount of rent they charge the seller to stay on as a tenant.

In a situation like this, the seller would pay gas and hydro, plus water and utilities.

In other situations, the amount of rent that gets charged includes different things like the cash home buyer’s overhead, costs, and expenses. These could include things like mortgage payments, utilities, insurance, and property taxes.

The property’s worth also determines the amount of rent charged.

How Cash Homebuyer Services Work

It’s important to know how the entire process works. If you’re looking to sell your house quickly, you’ll be able to see the advantages right from the beginning. This is a good method to sell a condo fast too.  

These companies buy your house with no commission and no real estate agent involved. They buy the property AS-IS so the seller doesn’t need to worry about repairs or upgrades. It’s an excellent way to sell a home fast.

An inspection comes first where the cash homebuyer documents the property so they can come up with an appraisal. It usually only takes 24 hours to come up with an offer that’s around market value.

The flexible closing is the final stage. The process is worked out with the seller’s convenience in mind.

Mortgage Broker Store is a cash home buyer. Call 416-499-2122 or email ron@mortgagebrokerstore.com for some free advice today. Our services are convenient, quick, and friendly. Keep in mind that there won’t be any commissions and there are no renovations or upgrades when you use our cash homebuyer services.

About Jonathan Alphonso

Mortgage Agent, Web Developer, and Real Estate Investor. Together with Ronald Alphonso I run MortgageBrokerStore.com. I write about a variety of topics on Canadian mortgages and real estate. Our particular specialty is dealing with Ontario power of sale and foreclosure situations.

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