Getting the stars to align during two simultaneous real estate transactions might seem like it requires a supernatural force. While it is possible for you to close on both your new home’s purchase and existing home’s sale on the same day, it’s not always what you as a seller want.
Maybe you haven’t quite found the right home yet or you want to ensure you have the capital for your next purchase. Regardless of the reason, one solution to bridging the gap between selling one home and purchasing another is to ask for what is commonly referred to as a post-occupancy agreement.
What is a Post-Occupancy Agreement?
A post-occupancy agreement is a legal document allowing the seller to continue living in their home for a specified period of time after closing. Depending on how the real estate transaction was negotiated, the seller generally agrees to pay the buyer rent while remaining in possession of the home.
The way in which post-occupancy agreements are drafted is unique to each situation. It is typically not a traditional lease agreement. Rather, it is an agreement that a company like us would draft where both parties are protected and there is security against property damage during the lease-back period.
At the end of the contracted period, the buyer would have a final inspection to make sure the property is in the same condition as when they purchased it. If everything passes muster, the seller would get back their deposit.
Post-occupancy agreements are fairly common in real estate transactions, but they should still be carefully drafted by legal experts. Our team at the Law Offices of Alex D. Sirulnik, P.A. and ADS Title Services, Inc. will ensure all parties are protected before, during and after closing. Give us a call at 305-443-7211 to ask your questions about real estate closings and post-occupancy agreements in Miami.