Excellent post! The only thing happening post closing is my post celebration drink! A post closing occupancy agreement (also known as a post-closing possession agreement) allows a seller to continue to live in his home after settlement, under an arrangement where the seller is essentially renting the home back from the new purchaser. Alternatively, a seller of a property may request that they remain in possession of their home after the closing. They are somewhat awkwardly named; it would make more sense to refer to these agreements as “pre-closing possession” agreements and “post-closing possession agreements,” respectively. closing of title for all or any part of a period expiring the day of. Typically, lenders will allow a short rent back. It is wise to include a provision in the agreement that states that the amount of Seller’s liability will not be limited to the amount held in escrow. For each day Seller is entitled to possession after closing, Seller Negotiate a separate - written - agreement that stipulates the day of possession, the condition of the home at possession, and penalties for violations. Fair Housing: Of course, I'd prefer to just give possession at closing and then you don't have to structure! However, problems can arise when the purchaser inspects the premises after the seller vacates and finds damage. Disclaimer: ActiveRain, Inc. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. If it's not in writing, it doesn't exist! Post Closing Possession Agreement CAUTION: THIS AGREEMENT MAY CREATE IMPORTANT CHANGES IN THE SELLER-PURCHASER CONTRACT RELATIONSHIP. What's the reason you're reporting this blog entry? A post-closing possession agreement allows a seller to temporarily remain in the condo, co-op or townhouse or for a... Because of the risk it involves for buyers, the use of a post-closing possession agreement only occurs when the … It is not offered as advice, legal or otherwise. 2020 © Eric Gonchar Real Estate | Colorado Web Design, Tandem Design Lab, A Co-op’s Guide To Refinancing an Underlying Mortgage, 15 TIPS TO BE READY TO SELL YOUR APARTMENT OR HOME, Co-op and Condominium Board Representation, Real Estate Sales and Purchase Representation. Eric P. Gonchar does not seek to represent you based upon your visit to or review of this web site. Edit & Download Download . Sounds like a good one! One of the biggest problems with a post closing occupancy is if the seller fails to vacate and remains in possession after the terminate date and the escrow does not cover the cost and expense to evict the seller. Are you sure you want to report this blog entry as spam? But don’t take this agreement lightly – it has significant ramifications and should only be used only as a last resort. 917-734-2231 This isn't unusual but Buyers should educate themselves on the pros and cons of this type of agreement. In the Seller Possession After Closing Agreement, the seller’s occupancy is for an agreed-upon number of days “after the Closing.” “Closing” is defined in paragraph 1(m) of the Contract as the completion of the process that culminates in the recordation of the deed and deed of trust, if any. American West Realty and Management - Cody, WY, Coldwell Banker Realty ~ 512.750.6899 - Austin, TX, Serving Buyers & Sellers in NW Austin Real Estate, Realty Group Referrals - Gaithersburg, MD, Keller Williams Realty Coeur d'Alene - Coeur d'Alene, ID, Jon Gosche Real Estate, LLC - BoiseMeridianRealEstate.com - Boise, ID, Boise & Meridian, ID Ada/Canyon/Gem/Boise Counties, Long & Foster Real Estate Inc 610-225-7400 - Devon, PA, Tredyffrin Easttown Realtor, Philly Main Line, Real Estate of Florida specializing in Martin County Residential Homes, Condos and Land Sales - Stuart, FL, Berkshire Hathaway HomeServices - Beverly Hills, CA, Realtor - Los Angeles Home Sales 310.486.1002, Lawrence "Larry" & Sheila Agranoff. Taking possession of a premises in vacant condition at close is almost always preferable if possible, as it helps to avoid potential issues going forward. Cell: 631-805-4400, Find an agent that knows how to protect you, Emotional Support Animals and Fair Housing, Making Your House A Home For An Elderly Loved One (Without Taking Out a Second Mortgage), For Sale: 856 Christy Ln, Powell, WY 82435, SOLD! Sometimes the seller will be renovating their new home and may want to remain in possession of the old home while the work is being completed. Yes, it is definitely a slippery slope and as you said, most sellers do the right thing - one just never knows though! Form of Post-Closing Possession Agreement. If the seller is planning on staying longer there must be a seller's lease back with rent, deposit and length of time negotiated. It's always best to protect yourself and have that formal, LEGAL agreement in place for post-possession prior to Closing on the home. Post-closing possession occurs when a seller retains possession of property for some period of time after closing. 1407 1/2 Salsbury Ave, Cody, WY 82414. Form of Post-Closing Possession Agreement free download and preview, download free printable template samples in PDF, Word and Excel formats William Feela I suspect problems are few and far between, but I would hate to be on the wrong end of a deal gone bad! The Perils Of Post Closing Possession. (a) This Addendum represents the complete agreement of the parties concerning the post-closing Possession of the Property by Seller. When taking vacant possession isn’t possible, your alternative is executing what’s known as a post possession agreement. I don't recommend it but we've had buyers and sellers do it on occasion, as ultimately it's their choice if they know the benefits and risks and navigate it properly. *DISCLAIMER. This is an excellent post, although any agent you would talk to would recommned avoiding post or pre-settlement occupation to avoid issues, but if handled correctly as youlay out it will go a long way to avoiding issues. -Kasey, Everything can be done safely but it takes an agent that understands the process and can help mitigate the risk. It is agreed that the relationship between the Purchaser and Seller during such. Generally, this is due to the fact that that the seller may be purchasing a new home and needs the proceeds of the sale to complete the purchase. Knock on wood. The period of time from the Possession Date until the Termination Date shall be referred to as the “Term”. First, pre-closing possession occurs when a purchaser takes possession to a property some time before the real estate closing. IT IS RECOMMENDED THAT ANY PERSON NAMED IN THIS AGREEMENT CONSULTS HIS OR Pre-Closing Possession License Agreement This agreement is made this day of , , between (hereafter called the “Seller”) and (hereafter called the “Purchaser”). Our job is to know how to protect our clients from the monsters they don't know exist! It is important for both parties, however, to be represented by an experienced real estate attorney in drafting such an agreement to avoid disputes and possible litigation. We are being asked to rent to a seller who has junk obscuring the structure in parts of the house and basement and most of the garage. Kasey & John Boles and the team at Jon Gosche Real Estate, LLC, Lawrence "Larry" & Sheila Agranoff. As a Buyer, there are steps you can take to protect yourself. This is excellent advice to share with prospective home buyers. © 2020 ActiveRain, Inc. All Rights Reserved Thanks for commenting, Kasey & John Boles and the team at Jon Gosche Real Estate, LLC. 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