You found the perfect home, and you need possession right after closing. BUT, the Seller has not found a home, and asking for a rentback for a month. What do you do? Is this the right situation for you?
First, the Post Closing Occupancy Agreement spells out to the both the buyer and seller, how long the Seller can remain in the property, who pays for the electric and gas, and water. Also, this document has an area to require the Seller to keep insurance on the property after closing. (After closing, there is no homeowner's insurance, so they will need renter's or contents policy.) Buyer also has the right to ask for a daily rental fee (usually the amount of their daily mortgage, but if competing with other buyers, sometimes this is waived just to get their bid accepted.)
I have created this document for buyers, but have to have a conversation to be sure they understand the ramifications it could have.
A Buyer will do their walk-through before closing, and get a key at closing, but won't be able to take possession until the agreed-upon date. Will the Seller leave the property in good condition? TYPICALLY, if a home is in good condition, and well-maintained, the Sellers usually do. If there is any question about how to leave the property, spell it out in this document. The Buyer also has a right to retain a deposit and return after they are able to take possession.
If at all possible, I always recommend to both buyers and sellers to give possession day of closing. Sometimes this is a tough call with Sellers who have not closed in years, and was used to having a few days after closing to get the move completed. We were one of only a handful of States that allowed the Seller to stay in a property after closing.
Lots to think and talk about when contemplating a "Rentback" when you thought you would take possession at closing and start the new chapter of your life.
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