When the real estate market is competitive, buyers often have to make concessions. They may pay more for a property or commit to the transaction without contingencies so that the seller selects their offer over others. In some cases, they might even agree to complete a transaction weeks before the seller can vacate the property.
In that scenario, they likely have to negotiate a post-closing occupancy agreement with the seller. As the name implies, a post-closing occupancy agreement gives the seller the ability to remain at a Florida residence for a specific amount of time after closing on a transaction. Real estate agents representing buyers in such scenarios may need to help them draft special agreements and ensure they properly protect themselves.
What does a buyer need to do to protect themselves when a seller stays at a property after closing?
Collecting a security deposit
When one person grants another access to a property via a rental home arrangement, they need to consider the possibility of the occupant damaging the property. In a post-closing occupancy scenario, the buyer may need to fill out an inventory affirming the property’s condition during the final walk-through.
The seller may also need to complete an inventory describing the property’s condition. They may need to submit a security deposit to the buyer or their agent. That way, the buyer can seek compensation for any damage caused to the property by the seller while they remain there after closing or while moving out of the home.
Establishing a clear timeline
Buyers often charge a rental rate that is above the current rate collected by local landlords or long-term stay motels. The goal is to motivate the seller to vacate the premises as promptly as possible.
Ideally, both parties agree to specific arrangements that include a final date when the seller must leave the property. The buyer may even be able to impose additional fees for remaining at the property after the date when they should leave.
Buyers need clear written agreements protecting their rights. In the worst-case scenario, a buyer may actually need to evict the seller if they don’t leave when they should or they cause significant, intentional damage to the premises.
Real estate agents often need the support of an attorney to adequately protect residential buyers in complicated scenarios. Understanding the unique challenges of post-closing occupancy arrangements is crucial for someone trying to help their buyers minimize the risk involved in a transaction.