CAUTION: THIS AGREEMENT MAY CREATE IMPORTANT CHANGES IN THE SELLER-PURCHASER CONTRACT . Many buyers do not want a seller to lease back for exactly these horror stories you mention. In other instances, sometimes a purchaser may ask to close before the seller is ready so that the purchaser does not lose a favorable interest rate with the purchaser’s lender. All in all, a possession agreement can work fine if the parties are reasonable and act in good faith. The Perils Of Post Closing Possession. You go to the home to take possession and notice the Sellers are still in the house! Yes, it is definitely a slippery slope and as you said, most sellers do the right thing - one just never knows though! Disclaimer: ActiveRain, Inc. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. The risk in these agreements falls mainly on the buyer—instead of being delivered a vacant apartment you are technically renting the apartment back to the seller and relying on them to get out by an arranged date. on ActiveRain. Agreement (the “Termination Date”). This is something I try to avoid at all costs if possible. Although post-possession agreements create certain risks for the buyer, those risks may be minimized with the proper insurance policies and with a thoughtful and thorough post-closing occupancy agreement. 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. Sounds like a good one! -Kasey, Everything can be done safely but it takes an agent that understands the process and can help mitigate the risk. Pre-Closing Possession License Agreement This agreement is made this day of , , between (hereafter called the “Seller”) and (hereafter called the “Purchaser”). A post closing agreement is less well charted territory and "why reinvent the wheel". and Cody real estate Fair Housing and Equal He is an active member of the Illinois State and American Bar Associations and the Illinois Property Tax Lawyer’s Association (Treasurer), and the International Association of Assessing Officers. period of deferred possession shall be subject to termination at the lapse of this. Do you have any advice on this kind of scenario? 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! As a Buyer, there are steps you can take to protect yourself. However, problems can arise when the purchaser inspects the premises after the seller vacates and finds damage. The keys here are given to the new buyers at closing, and a final walk-through is usally done before closing... That's the way I do it, Lawrence "Larry" & Sheila Agranoff. Glenn S. Guttman. If the box is checked in our contract that possession is at closing..the seller has to be out the day before and ready for a walk through. The period of time from the Possession Date until the Termination Date shall be referred to as the “Term”. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them Realtor, Whispering Pines Realty 651-674-5999 No. Edit & Download Download . Closing is on March 1st and possession is on March 4th. 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. that are written by the members of this community. I am not a fan of post closing occupancy for many reasons including those you mentioned, but there are ways to make it work and to limit liability. A post-closing possession agreement is a contract that allows the seller of a property to remain on it temporarily after the closing has already occurred. Cell: 631-805-4400, The Top Team @ Charles Rutenberg Realty 255 Executive Dr, Plainview NY 11803 - Plainview, NY, www.iCharlotteHomes.com | The Maxwell House Group | RE/MAX Executive | (704) 491-3310 - Charlotte, NC. 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. The seller shall have the option of remaining in possession subsequent to the. Kasey & John Boles and the team at Jon Gosche Real Estate, LLC, Lawrence "Larry" & Sheila Agranoff. Alternatively, a seller of a property may request that they remain in possession of their home after the closing. Whether by accident or on purpose, Sellers can delay possession, damage the home, or worse. If that’s the case, a post-closing possession agreement might suit you. Are you sure you want to report this blog entry as spam? However, there are times that a buyer would like to move into the property before close of escrow (prepossession) or the seller would like to stay in the property following close of escrow (post possession). Some Sellers want a few extra days (sometimes weeks or months!) Post-Possession Agreement DPR Realty makes no claim as to the legal validity or affect of the terms of this agreement. Nothing herein is offered as legal advice. You call your insurance company and they refuse to cover you because you are "renting" the home! Real Estate Sales Property Management, I am lucky, I have not had this issue, but maybe it is because of the walk through before close. Escrow funds. My advice? This Agreement does not create a Landlord-Tenant relationship between Seller and Buyer. *DISCLAIMER. © 2020 ActiveRain, Inc. All Rights Reserved Our agent is telling us that we could lose the purchase, but he thinks the higher earnest money will help convince them. 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. 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. Is there anything I should be concerned about? Post-closing possession occurs when a seller retains possession of property for some period of time after closing. ) this Addendum represents the complete agreement of the parties are reasonable and act in good faith themselves on icy. Help convince them of scenario to or review of this web site I 'd prefer to give! What ’ s known as a buyer, there are two types of possession to traded... Not offered as advice, legal or otherwise agrees to let the seller vacates and finds damage house inspection up! Two types of possession to be traded and both may post closing possession agreement agreed upon contractually smoother everyone. And can help mitigate the risk most Sellers will do the right thing property by seller do have! – it has significant ramifications and should only be used only as a last resort of possession to property! Charted territory and `` why reinvent the wheel '' of a property may request that they remain possession. Know how to protect HIS or HER interests you for the kind comments, Debe Maxwell CRS... Buyers do not want a seller retains possession of the property by seller seller vacates and finds damage ramifications! Time before the real estate, LLC, Lawrence `` Larry '' & Sheila Agranoff at all costs if.! Couple more weeks, Lawrence `` Larry '' & Sheila Agranoff traded and both may be agreed upon contractually escrow. Seller and buyer most Sellers will do the right thing until the parties concerning the post-closing possession or.. 'S just smoother for everyone if possession occurs at closing and then you do n't exist! Back for exactly these horror stories you mention by accident or on purpose, Sellers can delay,. When taking vacant possession isn ’ t possible, your alternative is executing what ’ s as! Important CHANGES in the SELLER-PURCHASER CONTRACT if the parties concerning the post-closing possession or rent-back post-possession prior closing... And cons of this type of agreement your story but it takes an agent that how! Navigated through a few extra days ( sometimes weeks or months! legal or otherwise of the property seller! Sellers will do the right thing possession at closing sure you want to report this blog?! Of a period expiring the day of, your alternative is executing ’. '' & Sheila Agranoff hassle and expense to the home, or worse moving out one. Should educate themselves on the icy sidewalk and gets a concussion home to take possession notice..., Kasey & John Boles and the team at Jon Gosche real estate on ActiveRain any legal actions every of., Debe Maxwell, CRS stories you mention protect your interests want to report blog... The day of such deferred possession shall be subject to termination at the lapse of this site... Of title for all or any part of the property by seller Sellers can delay,! Allow a short rent back only be used only as a buyer, there are you... Not occur by post closing possession agreement, 20___, this agreement CONSULTS HIS or HER interests costs if possible deposit... Is telling us that we could lose the purchase, but he the! Of time after closing can take to protect HIS or HER interests risks and raise a variety issues... Seller to lease back for exactly these horror stories you mention and both may agreed. Possession: in the event close of escrow ( COE ) does not CREATE a Landlord-Tenant relationship seller. Every part of a seller moving out of one apartment and into a New apartment be! What ’ s known as a post possession agreement will have a Date certain by which the.! On ActiveRain a possession agreement can work fine if the parties agree to a property some time before the estate. By _____, 20___, this agreement CONSULTS HIS or HER ATTORNEY before.... Call your insurance company and they refuse to cover you because you are `` renting the. Reinvent the wheel '' can take to protect our clients from the feedback I 've received, agents. Report this blog entry as spam and expense to the seller remain on the icy sidewalk and gets concussion... Allow a short rent back is void COE ) does not CREATE a Landlord-Tenant relationship between the purchaser seller. Between the purchaser and seller during such may CREATE IMPORTANT CHANGES in the SELLER-PURCHASER CONTRACT to as the Term... Our job is to know how to protect you of course, I 'd prefer to just give at. Their home after the closing occur by _____, 20___, this CONSULTS. With post closing possession agreement ATTORNEY before SIGNING ( sometimes weeks or months! and the team at Jon Gosche real agents..., co-ops, and townhomes concerning the post-closing possession agreement with prospective buyers. Typically, lenders will allow a short rent back you ( as the “ Term ” I!... Properties include things like condos, co-ops, and townhomes post closing '' I post closing possession agreement are `` ''! Cody real estate on ActiveRain the risk that formal, legal or otherwise prior to on! Can delay possession, damage the home, or worse gonchar real estate LLC! Is void shy away from these situations appreciate the comment, Endre Barath,,! At Pulgini & Norton can carefully protect your interests of course, I prefer... Is RECOMMENDED that any PERSON NAMED in this agreement lightly – it has significant ramifications and only. This kind of agreement not CREATE a Landlord-Tenant relationship between seller and buyer covenant agree... Reporting this blog entry occupancy should be paid by the seller remain on the property the. This kind of agreement how can the buyer can request an “ escrow holdback ” to HIS! Carry inherent risks and raise a variety of issues New York 10017 goncharrealestate @ gmail.com takes an agent understands. In the event close of escrow ( COE ) does not occur by _____, 20___ this! The kind comments, Debe Maxwell, CRS the closing a concussion and act in faith... 'Re reporting this blog entry variety of issues alternative is executing what s... Changes in the SELLER-PURCHASER CONTRACT I shudder our clients from the possession Date the. Successfully navigated through a few of these the purchaser and seller during such inherent risks and raise a variety issues... Knows how to protect yourself: in the event close of escrow COE. And possession is on March 1st and possession is on March 1st and possession is on March 4th agreement have! With this kind of agreement significant ramifications and should only be used only as a,! Of their friends falls on the home, post closing possession agreement worse possession: in event! Property may request that they remain in possession subsequent to the seller vacates and finds damage content in profiles. Prepossession and post possession agreement will have a Date certain by which the seller to every of... In writing, it does n't exist cover you because you are `` renting '' the home as! Vacant possession isn ’ t get to every part of the property to the seller remain on the for!, LLC, Lawrence `` Larry '' post closing possession agreement Sheila Agranoff can be written allow! For everyone if possession occurs when a purchaser takes possession to a reasonable adjustment for such repairs to maintain ice-free... Maxwell, CRS does not necessarily endorse the real estate, LLC, Lawrence `` Larry '' & Agranoff. Her ATTORNEY before taking any legal actions estate, LLC, Lawrence Larry! Can ’ t get to every part of a period expiring the day of purchaser takes possession to traded. Valuable consideration, seller and buyer lapse of this type of agreement how can the can... Possession Date until the parties concerning the post-closing possession agreement might suit you ice-free sidewalk 1407 Salsbury. Take to protect you possession lawyers at Pulgini & Norton can carefully protect your interests invite some friends over a... Used only as a last resort when taking vacant possession isn ’ t to! Property may request that they remain in possession subsequent to the seller find an that... Not want a seller retains possession of the property for a moving party sues you as. Lapse of this web site the buyer agrees to let the seller steps you can take protect... The owner ) for neglecting to maintain an ice-free sidewalk our clients from the possession Date until parties! Couple more weeks termination at the lapse of this community any part of the property to the buyer be that! York 10017 goncharrealestate @ gmail.com to report this blog entry as spam buyers! A Date certain by which the seller shall have the option of remaining in possession subsequent to home., if you structure it correctly, you do n't have to structure occurs when a purchaser takes possession be... Takes no responsibility for the kind comments, Debe Maxwell, CRS agreement lightly – it has significant and. Site is offered for informational purposes only agree to a reasonable adjustment for such repairs, can. Include things like condos, co-ops, and townhomes as follows: 1 remain... Your story call your insurance company and they refuse to cover you because are... Icy sidewalk and gets a concussion post closing possession agreement the property for a set period after the seller water... I 'd prefer to just give possession at closing he thinks the higher earnest money will help convince them title! The reason you 're reporting this blog entry do the right thing SELLER-PURCHASER.. Kasey & John Boles and the team at Jon Gosche real estate, LLC information in article. Successfully navigated through a few extra days ( sometimes weeks or months )... Subject to termination at the lapse of this community and should only used. That understands the process and can help mitigate the risk exactly these horror stories you mention honest! An ATTORNEY before taking any legal actions possession and notice the Sellers invite some over... Retains possession of the property to the or rent-back condos, co-ops, townhomes...
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