In brisk markets, Sellers may not have located 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. (In this crazy market right now, the buyers are offering FREE rent in most contracts)
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 advanced 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. (this is why there is only 60 days included in a post closing agreement)
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. It is mandated in the State of Colorado if a Seller will remain in the property after closing, this document is required.
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