Post-Closing Occupancy Agreement Explained

With more homes on the market, in theory, it is easier for sellers to find a new place to call home. But life happens. You may be looking for a more specific property, which limits your options. Or what if you get an offer on your home sooner than you anticipated, needing more time to move? Then, you may want a Post-Closing Occupancy agreement.

What is a Post-Closing Occupancy Agreement?

When it comes to possessing a home, there are two options in a real estate transaction:

• The seller moves out before closing to give the buyer an opportunity to inspect the home and move in after the closing.
• The seller moves out after closing, becoming a temporary renter, and the buyers become their landlords, and pay them a monthly fee while they prepare to move out.

There are advantages and disadvantages to each option. For example, if the seller moves out before closing and the buyer backs out of the deal, the homeowners may be in a difficult situation. On the other hand, if the seller stays after the closing, the buyers forego the standard final walkthrough. They may discover some surprises after the sellers move out. Then what?

The Post-Closing Occupancy Agreement is the answer to this problem. Essentially, it is a formal agreement backed by the Colorado Real Estate Commission. The agreement addresses all potential issues that may arise between the seller and buyer.

The contract’s seventeen sections cover all aspects of the transfer and occupancy, such as:

• Which party is responsible for the home’s maintenance? It can cover every aspect of maintenance, from lawn mowing to the replacement of operating systems like furnaces.
• Which party will pay the utility bills and feels including gas and electricity?
• The amount the home seller will pay in rent for the period they remain in the property.
• A notice period just in case the buyer needs to access the property.

While Post-Closing Occupancy Agreements have been in existence for some time, they have only recently become legally binding. The longest ones cover up to 60 days; any period longer than that requires a special agreement prepared by an attorney.

Your RE/MAX Alliance agent wants to ensure you have a smooth transition to your new home. Contact them to discuss all of your needs (timing, budget, and such).

Source: DailyCamera.com