Owner to stay after closing

I just met the current owner, who lives onsite in a SFH I plan to bulldoze next year. They are looking to get a USDA loan and find a new place to live. They said from now, it will be about 90 days to get that done. Their father is literally on his death bed in the house. In order to limit the number of times they need to move, they asked if they could stay until after closing (Dec 19) for 2-3 months.

Anything I need to consider? Thoughts?

Sounds fairly straightforward. Just put them on a strict lease with a specific deadline to move out and steep penalties/rent increase if they stay beyond that.

I’ve done that before. Nick1 is correct – you need to put in strict provisions on what happens after 3 months, as they will probably have made no forward movement by then. You’ll want to have rent start on a certain date and – since you were going to tear it down anyway – you might get a year or two of rent that you never expected before you bulldoze it. These type of situations always take two to three times longer than the seller plans. But since it’s free rent to you, why not?

I have the same situation. We’re doing the standard residential rental agreement for the state (you can google it). First three months free, then rent of XX starting on XX…