What Is "Seller Rent-Back"?

Real Estate Agent with eXp Realty 331610

In home purchase transactions, there are many times when the buyer and the seller are simply unable to agree upon a specified closing date. The Real Estate Agent involved can negotiate a 'rent back' period that is agreeable to both parties. This means the transaction technically closes, the loan for mortgage financing is funded, and ownershiRita Legan ASP Staging Realtor 440-227-4461p of the property is transferred into the buyer's name. However, the buyer does not take occupancy of the property until several days later. Instead, the buyer sets up a rental agreement in which the property is leased back to the seller for a temporary period that everyone has agreed upon.

While this strategy is fairly common, it is important to make sure the seller is not occupying the property in a lease agreement for more than 30 days* after the close of the purchase transaction. This would constitute a big problem for the new homeowner. After 30 days, the lender would view this as a non-owner occupied purchase, and it would cause the terms of the loan to change radically.

*This requirement can vary depending upon the lender. Always verify that the timeframe is permissible prior to drafting such an agreement.

This article thanks to Don Jareki of Heritage Mortgage

Posted by
Best Regards,
Rita Legan ASP Staging Realtor CDPE
Call or Text 440-227-4461
or meet me on the web at

This entry hasn't been re-blogged:

Re-Blogged By Re-Blogged At
Home Selling
Ohio Cuyahoga County
real estate in cleveland area
home buying rita legan realtor in strongsvilie ohio
home selling tips from realtor in strongsville ohio

Spam prevention

What's the reason you're reporting this blog entry?

Are you sure you want to report this blog entry as spam?


Rita Legan

ASP Staging Realtor CDPE
Ask Me A Question Now!
Spam prevention

Additional Information