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Don’t ignore post-possession terms when buying a new home

On Behalf of | Nov 19, 2020 | Real estate transactions

When you finally find a house you want to buy, you probably feel very eager about taking possession of the property and moving into it. However, the seller may need to stay in the home until they close on their new house or finalize everything for a long-distance move.

If you know that the seller will likely require additional time at the property after closing before you can move in or if there is a risk for the seller if experiencing a delay in their move, it is of the utmost importance that you talk about setting appropriate post-possession terms.

Post-possession agreements involve a seller in your home after closing

The phrase post-possession agreement refers specifically to paperwork agreeing to allow a seller in a real estate transaction to stay in the home even after it becomes the possession of the buyer. Post-possession needs are common enough that many standard real estate contracts already include places for you to explain your terms.

You can execute a lease

The longer you think the seller may stay, the more important expensive post-possession terms become. Asking them to pay 150% of the market rate cost per day for a rental of the same size can help keep the seller motivated to move out as quickly as possible.

You might ask for even more than that if you suspect there could be major delays before you can take possession. In a situation where you expect the seller to stay more than a week, you may want to have them execute a lease with very specific terms as part of your closing.

Partnering with a real estate attorney will make it easier for you to protect yourself in all of your closing documents and will also help you with the creation of a lease if it is necessary in your situation.