Special offer

Seller Rent-Back: Role Reversal That's Clear as Mud for Buyers and Sellers

Real Estate Agent with Monument, Black Forest, Falcon, Fountain homes


Seller rent- back has been a brilliant solution utilized by parties in a contract to resolve the logistics of possession, but the role reversal between what was the seller now tenant and the buyer now landlord is clear as mud for most parties involved. clear as mud The typical time frame for a seller to remain in the property is 3 days but can extend for weeks depending upon negotiated terms. 

 At the closing table all is well and amiable and usually no issues arise, but with all successful transactions there are those that bring to light the flip side and the need for our new 2012 Colorado Post-Closing Occupancy Agreement also known as the Colorado Seller Rent-Back Agreement.


For the Colorado Realtors, the form is a solution and blessing that forces both parties to resolve potential problems before they arise.  Most buyers after closing are not ready to assume full financial/liability responsibility for a home they have not yet stepped foot in, but that’s essentially what they have done the minute money changed hands and the deed was delivered.  Tempers will flare with the first phone call that the hot water tank needs replacing but the financial responsibility of the home now rests with the new owner.

role confusion post closing


The sellers have a difficult transition to renter and are now liable for damage to the property, must tolerate inspections by new owner, and lose control of what was a few short days ago their castle.  They should as any renter have a security deposit and pay rent which are all negotiated in the seller rent back agreement.


Clarification to both parties what their new roles imply is critical to the success of the rent back scenario. One of the most ignored and misunderstood aspects of rent back are the established insurance policy needs during this time frame.  Should the seller now tenant purchase a renter’s policy for the duration as the home owner’s policy became null and void after sale?  Does the buyer now owner need gap insurance to include non-owner occupied coverage for the period of time prior to move in?  Whenever and where ever there is a chance for Murphy to play havoc he will certainly rear his ugly head, and after the event is not when one wants to discover they are under insured or not insured for the scenario at hand.   These issues are all illuminated and resolutions formulated prior to closing with the proper use and implementation of the new 2012 Colorado Seller Rent-Back Agreement, and for all the Realtors across the great state of Colorado can I have an Amen! 


Mark Delgado
houses for rent, Solano County & Glen Cove - Benicia, CA
Benicia and Vallejo, Property Management, rental h
This certainly does sound clear as mud. I can see how roles would become confused and tempers flare. You won't see me getting involved in that situation.
Dec 15, 2011 12:22 AM
Charles Stallions
Charles Stallions Real Estate Services - Pensacola, FL
850-476-4494 - Pensacola, Pace or Gulf Breeze, Fl.

Lorraine, having done many of these and never had any issues sometimes you need to do this but like you say write it out.

Dec 15, 2011 12:24 AM