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What is a Post Closing Occupancy Agreement?

Reblogger
Managing Real Estate Broker with Platinum Properties- (931)771-9070 TN Broker: 208698

This is an agreement between the buyer and seller where the seller remains in the property after the closing. In Clarksville, TN the seller usually pays an occcupancy fee per day. We do not call this rent as it is not a traditional lease with a tenant and landlord.

Original content by Joan Cox DRE# ER40011786

 

In brisk markets, Sellers may not have a replacement home in mind, and a Post Closing Occupancy Agreement may need to be prepared to find the replacement home.

 

This document describes who pays for the utilities, and requires the Seller to now carry Renter's Insurance after closing as well as the Buyer holding a non-owner policy.   It also identifies how long this short term rental will be and if there is a deposit collected.    Rent can be collected, and is usually calculated off the Buyer's new mortgage payment, not the Seller's mortgage.    The rent and utility payment is collected at closing, and if Seller vacates prior to the end of the term, monies are returned to Seller.

 

The Seller must maintain the property, water and maintain the yard, if not done by a third party.    If the furnace or water heater needs repair, it states the new Buyer is responsible, as well as any kitchen appliances.  (the Buyer now owns the property)

 

This agreement also states with notice, the Buyer does have the right to have access the property, and immediate access with any emergency.  

 

If the Seller does not vacate on the date agreed upon, there is a fee per day collected, which is usually the same as written in the Contract to Buy & Sell.  This document is used for up to 60 days only after closing.    If the transaction is financed, lenders want to know the Buyer will occupy the property within 60 days.

 

There are times you do not want the Seller in the property after closing, and need to be sure the Buyer is comfortable with this Post Closing agreement.   Many Sellers are requesting this document, and must accompany the offer when submitted.

 

 

 

 

 

 

 

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 Centruy 21 Platinum Properties2130 Wilma Rudolph Blvd.

Clarksville, TN 37040

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Comments (12)

Sally K. & David L. Hanson
EXP Realty 414-525-0563 - Brookfield, WI
WI Real Estate Agents - Luxury - Divorce

In Wisconsin we use an Addendum O and outlines the terms and conditions of occupancy post closing.

May 15, 2017 05:01 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Debbie, thank you for the re-blog, as this is a document buyers need to know about if they allow the seller to remain in the property after closing.

May 15, 2017 05:24 AM
Sheri Sperry - MCNE®
Coldwell Banker Realty - Sedona, AZ
(928) 274-7355 ~ YOUR Solutions REALTOR®

Hi Debbie, 

Joan provides some good information for those purchasing in Colorado who may have to deal with these conditions. 

May 15, 2017 05:44 AM
Sheila Anderson
Referral Group Incorporated - East Brunswick, NJ
The Real Estate Whisperer Who Listens 732-715-1133

Good morning Debbie. A good choice for a re-blog. In NJ where I practiced they were called Use & Occupany agreements and were seldom used.

May 15, 2017 07:10 AM
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

Nice re blog Debbie Reynolds , i am happy i do not have to do this often and like to warn my buyers against letting the seller stay after closing. Having an agreemnet is a must though if they do stay

May 15, 2017 07:30 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

We call them different names but they accomplish the same purpose, Sally K. & David L. Hanson.

May 15, 2017 05:56 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Hi Joan Cox, this is good information to share with the public. 

May 15, 2017 05:58 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Hi Scott Godzyk I don't like to have this happen either. It is risky. 

May 15, 2017 06:00 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

They have been around for a long time, Sheila Anderson.

May 15, 2017 06:02 PM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Thanks for your comment Sheri Sperry - MCNE®.

May 15, 2017 06:03 PM
Roy Kelley
Retired - Gaithersburg, MD

This is an excellent reblog selection and good information to share.

May 16, 2017 05:45 AM
Debbie Reynolds, C21 Platinum Properties
Platinum Properties- (931)771-9070 - Clarksville, TN
The Dedicated Clarksville TN Realtor-(931)320-6730

Thank you Roy Kelley. I hope you are having a good week. 

May 17, 2017 07:15 PM