First things first, don’t draft any type of real estate agreement without an attorney at your side. There’s simply too much at stake for it to all blow up due to an error in the contract. This is especially important when drafting a pre-occupancy agreement. While this type of arrangement can be convenient, it’s not without risks—especially for sellers. Allowing someone to live in your home before the sale is finalized means you’re handing over possession before you’ve been paid in full.

Key Considerations Related to Pre-Occupancy Agreements

If your buyer is eager to move in before the deal officially closes, you might be asked to consider a pre-occupancy agreement. This is essentially a short-term lease that outlines the buyer’s rights and responsibilities for occupying your property during that in-between period before closing. 

Common situations when pre-occupancy agreements may come up include when the buyer’s lease is ending and they’d rather not move twice, there are delays in financing or closing documents, and when the home is vacant and the buyer wants early access for move-in prep or minor renovations.

Before moving forward with drafting a pre-occupancy agreement, keep these considerations in mind:

  • You’re still the owner and liable – Until closing is finalized, you remain the legal owner. That means you’re still responsible for property taxes, insurance and any liability that might arise. If a buyer injures themselves or causes damage during this period, it could become your problem. Talk to your homeowner’s insurance provider about your coverage during the pre-occupancy period and be prepared to adjust your policy if needed.
  • Require a security deposit or fee – Just like a typical landlord, it’s reasonable to request a security deposit or occupancy fee. This covers potential damages and ensures the buyer has some skin in the game in case things go south before closing.
  • Clearly define what they can and can’t do – Your agreement should spell out exactly what the buyer can do in the home before closing. Are they allowed to start renovations? Can they bring in large pieces of furniture or pets? Who handles maintenance issues during this time? Leave nothing open to interpretation. Gray areas become legal headaches later on.
  • Set a firm move-out date (just in case) – No one expects the deal to fall apart, but it happens. Your agreement should include language requiring the buyer to vacate the property immediately if the sale doesn’t close by a certain date, or if financing falls through entirely.
  • Make it a formal agreement – A verbal promise or email chain won’t cut it. Work with a Florida real estate attorney to draft a proper pre-occupancy agreement that protects your interests. 
Contact our Team at Sirulnik Law and ADS Title Services

Agreeing to pre-occupancy might seem like a generous gesture to help your buyer out, but you must always protect yourself first. At the Law Offices of Alex D. Sirulnik, P.A., we help Florida sellers navigate complex real estate scenarios like pre-occupancy with confidence and clarity.

Let us help you draft an agreement that protects your home and peace of mind. Call our teams at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. today to ask your questions.