Maybe You Need To Stay For A While

By
Real Estate Broker/Owner with HomeRome Realty 410-530-2400 311291

 

Stay for awhile 

 

Post-closing occupancy, post-settlement, rent back, no matter what you call it, there are situations when the seller needs to stay in their home after the final closing date takes place. Make these arrangements during initial negotiating. Buyers must agree, and a formal contract or addenda needs to be in place. Post occupancy details: when does the agreement start? Is there a charge to stay? Was this negotiated at the time of the contract? Is there a security deposit?

A few years ago, selling the farm, the sellers were allowed to keep possession for a month to coordinate an out of state move. During that time, the new buyers had permission to be on the property with contractors, designers, etc. This agreement was a negotiating tool and was a win-win for all. 

 

 Post occupancy details: When does the agreement start? Is there a charge to stay? Was this negotiated at the time of the contract? Is there a security deposit? Cost per diem, double insurance coverage, and of course, the “what ifs.” 

Needed repairs, utilities, condo/HOA fees, taxes, lawn care, and more. Does your post-occupancy agreement cover these concerns? 

 

With our pandemic, there are other situations. The next home may not be ready, and they want to avoid a double move. 

Special addenda are required to spell out the terms such as,

needed repairs, utilities, condo/HOA fees, taxes, lawn care, and more.

 

Questions about staying in your home 

Call 

Margaret Rome

 

Margaret Rome

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Topic:
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Maryland Baltimore
Groups:
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Tags:
rent back
homerome
post settlement occupancy agreement
seller staying in house after settlement

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Rainmaker
837,447
Jeff Masich-Scottsdale AZ Associate Broker,MBA,GRI
HomeSmart Real Estate - Scottsdale, AZ
Arizona Homes and Land Group/ Buy or Sell

Get insurance that is for sure. Good points as usual Margaret Rome Baltimore 410-530-2400. Jeff 

Sep 21, 2020 09:39 PM #2
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Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

Great points, Margaret. Rent-backs (or whatever you want to call them) can work well if the appropriate terms and conditions (timing, costs, etc.) are negotiated up front.  I've had a couple of multiple offer situations that my clients won I believe because the buyers were able to offer the flexibility the sellers needed...not everyone can or will do that.

Jeff

Sep 21, 2020 10:23 PM #3
Rainmaker
3,296,744
James Dray
Fathom Realty - Bentonville, AR
Exceptional Agents, Outstanding Results

Morning Margaret.

I'm seeing more of those also, in my area, it's difficult to find a home at a reasonable price.  I'm preparing for the next cycle, when the market will turn.

Sep 22, 2020 01:39 AM #4
Rainmaker
3,739,784
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hello Margaret - even in "normal" times, a real estate transaction consists of many moving parts. On the way to success, coordination of those parts includes written agreement.  

Sep 22, 2020 04:35 AM #5
Rainmaker
5,446,438
Barbara Todaro
RE/MAX Executive Realty - Retired - Franklin, MA
Previously Affiliated with The Todaro Team

Good morning, Margaret Rome Baltimore 410-530-2400 in my marketplace with the current market conditions, this type of transaction would not be typical....it's a seller's market but there are conditions that just do not fly.

Sep 22, 2020 05:05 AM #6
Rainmaker
3,718,809
Wayne Martin
Wayne M Martin - Chicago, IL
Real Estate Broker - Retired

Good morning Margaret. Way back in the dark ages when I started in real estate the contract provided for post closing occupancy by the seller in the second paragraph on the front page. 30 to 45 days was normal with a daily rate equal to the mortgage pament the buyer had to pay. Oh, how times have changed. Enjoy your day!

Sep 22, 2020 05:38 AM #7
Rainmaker
1,630,969
Kat Palmiotti
406-270-3667, kat@thehousekat.com, Broker, Blackstone Realty Group - brokered by eXp Realty - Kalispell, MT
The House Kat

I definitely agree that this must be discussed up front. It's wonderful when all parties are agreeable.

Sep 22, 2020 05:44 AM #8
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Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Thank you for this well-thought-out post, I agree wholeheartedly.

Happy Tuesday Margaret Rome Baltimore 410-530-2400 

Sep 22, 2020 05:50 AM #9
Rainmaker
2,256,767
Grant Schneider
Performance Development Strategies - Armonk, NY
Your Coach Helping You Create Successful Outcomes

Hi Margaret Rome Baltimore 410-530-2400 - I can see where this needs to be very carefully drafted.  I am sure that this situation arises from time to time.

Sep 22, 2020 06:53 AM #10
Rainmaker
3,999,069
Dorie Dillard CRS GRI ABR
Coldwell Banker Realty ~ 512.750.6899 - Austin, TX
Serving Buyers & Sellers in NW Austin Real Estate

Good morning Margaret Rome Baltimore 410-530-2400 ,

Many sellers in todays market are asking for a seller's lease back which is part of our contract. I just wrote an offer for a buyer and the seller wants at 35 day free lease back after closing in 30 days to allow them time to find a home!

Sep 22, 2020 07:00 AM #11
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Dorie Dillard CRS GRI ABR Just left you a message. Would you share the verbiage used in your contract for the lease back? Hope to see you at 2 pm on ZOOM

Sep 22, 2020 07:39 AM #12
Rainmaker
3,575,846
Nina Hollander
Coldwell Banker Realty - Charlotte, NC
Your Charlotte/Ballantyne/Waxhaw/Fort Mill Realtor

Hi Margaret... just closed on a house last week where my seller needed 10 days longer than the offered closing date. Buyer agreed to let seller remain in the house for those 10 days to lock in her interest rate for an earlier close date.

Sep 22, 2020 09:54 AM #13
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Kathy Streib
Room Service Home Staging - Delray Beach, FL
Home Stager - Palm Beach County,FL -561-914-6224

Hi Margaret - it seems so simple on the surface but the what-ifs can truly bite you on your behind if precautions are worked out. Good reminder. 

Sep 22, 2020 02:32 PM #14
Rainmaker
2,823,935
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

You cover important points to be considered and negotiated when sellers need to retain occupancy past closing of the sale, Margaret!

Sep 22, 2020 03:47 PM #15
Rainmaker
2,823,935
Myrl Jeffcoat
GreatWest Realty - Sacramento, CA
Greater Sacramento Real Estate Agent

CONGRATULATIONS Margaret, on having this blog FEATURED in the Old Farts Club group!  

Sep 22, 2020 03:48 PM #16
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Myrl Jeffcoat  It is such a simple concept but to put it into writing there are always a lot of "what-ifs" to consider.

Sep 22, 2020 07:11 PM #17
Rainmaker
589,242
Mary Hutchison, SRES, ABR
Better Homes and Gardens Real Estate-Kansas City Homes - Kansas City, MO
Experienced Agent in Kansas City Metro area

A month!  That's quite a long time.  Agreed--all has to be in writing to cover those 'what if' issues, especially insurance as well

Sep 23, 2020 10:28 AM #18
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Mary Hutchison, SRES, ABR I have been collecting Post Occupancy Agreements, hoping to find one that is simple, and easy to read.

Sep 23, 2020 10:42 PM #19
Rainmaker
3,484,415
Kristin Johnston - REALTOR®
RE/MAX Realty Center - Waukesha, WI
Giving Back With Each Home Sold!

Years ago when I purchased my first home, I allowed the seller to rent back...don't see it so much anymore here

Oct 04, 2020 07:33 AM #20
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Margaret Rome Baltimore 410-530-2400
HomeRome Realty 410-530-2400 - Pikesville, MD
Sell Your Home With Margaret Rome

Kristin Johnston - REALTOR®  How did that rent back go. Bet there were no problems.

Oct 04, 2020 07:48 AM #21
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