Today’s home buyers generally expect to obtain possession of their new home when the deed is recorded - possession on closing. Do you have a plan in mind for where to move your belongings in case of a quick close, say two weeks from the day the buyers look? That’s quick!
In Arizona at least, real estate agents are required by law to recommend that you obtain advice from legal, insurance and tax professionals prior to any pre-possession or any post-possession agreement acceptance.
Pre-possession would be where you give possession of your home to your buyer, prior to close of escrow. An example would be rent-to-own or lease-purchase, or just move in a week before closing. Who pays insurance during that period? How does this arrangement affect your capital gains treatment for tax purposes?
Post-possession would involve where you’re not vacating until some future time after the close of escrow. Do you pay rent to the buyer during that time? You prorated taxes to date of closing. Do you pay the buyer for the taxes after closing?
How much time do you need to prepare to move? When you put your home on the market to sell, it would be a good time to plan your move. In a lot of ways, it is so much simpler just to give the buyer possession on closing.
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