No two real estate transactions are alike. Buyer and seller circumstances can affect the terms of the deal, market conditions might also play a factor, and a host of other variables go into determining how a purchase agreement is ultimately negotiated. One such element that sometimes gets negotiated into a real estate deal? A pre-occupancy (or early-occupancy) agreement.
What is a Pre-Occupancy Agreement?
Pre-occupancy agreements are used in circumstances when the buyer wants to occupy the property before closing day. If the seller agrees to allow the buyer to take possession of the home early, they would draft a pre-occupancy agreement to specify the conditions of the agreement.
To learn what is needed if a seller would like to maintain possession of the home after closing, see “What You Need to Know About Post-Occupancy Agreements”.
When You Might Consider a Pre-Occupancy Agreement
For buyers, negotiating a pre-occupancy possession can be particularly beneficial in situations when they’ve already sold their other house. It’s expensive and a hassle to find temporary housing or be stuck having to move twice.
The benefits of early occupancy agreements largely play to the buyer’s advantage. It’s risky for sellers to allow the buyer to move into the property early (what if they back out of the deal?), so it’s not uncommon for there to be more stringent conditions. For example, the seller may expect more earnest money to be put down and that the utilities are transferred into the buyer’s name. It’s common for the seller to accept the condition of the house as is and consider the inspection period closed as well.
If you’re preparing to buy or sell a new property in the Miami area, it’s important to consider all your options before inking the deal. Our team of experienced real estate attorneys work closely with domestic and international clients who are looking to move to the area. We can help ensure your purchase agreement is negotiated to meet your needs and that your closing is seamless. Contact us at the Law Offices of Alex D. Sirulnik, P.A./ADS Title Services, Inc. to learn more about how we can help you.