A leaseback is when the seller of the property needs to rent back from the new owner. This can be because they haven’t found a new place to live, or sold more quickly than they anticipated. For a buyer it is rarely to your benefit to do a leaseback. The amount of rent you collect on the small number of days isn’t worth the hassel and unless you don’t plan on moving quickly, it will be an inconvenience to you. It is done to be nice usually.
Leaseback rarely occurs in deals because it can be quite sticky. You don’t collect any security deposit from the seller (they just sold you their house !) so if they damage the place while they are there (could be just on accident) you don’t have any coverage for that. If you are paying to live somewhere else, each day that you can’t move in will be costing you your daily living expense. Usually the seller leasing back will say they will pay your PITI- mortgage payment + taxes + insurance. This doesn’t factor in your living cost per day.
If the seller decides to stick around a little longer, you may end up with an eviction process, which seems quite ridiculous.
The good news is the leaseback amount is withheld from the seller proceeds in escrow, so that you don’t have to collect a rent check from the seller.
In all tenancy situations, I recommend a move in and move out inspection. Before the sellers leave go through the property with them if you spot a problem you can resolve it.