Alternatively, a seller of a property may require that he remain in possession of his house even after closing. A post-conclusion occupancy contract (also known as an after-sale property contract) allows a seller to continue to reside in his home after the count, as part of an agreement in which the seller essentially rents the house from the new buyer. In general, this is due to the fact that the seller can buy a new home and needs the proceeds of the sale to complete the purchase. To avoid leaving the sales premises a few days before closing, the seller may require that he remain in possession until the purchase is completed. Sometimes the seller will renovate his new home and perhaps he would like to stay in possession of the old house while the work is completed. In other cases, a buyer may sometimes require closing before the seller is ready so that the buyer does not lose a favorable interest rate from the buyer`s lender. The logistics of a salesman leaving an apartment for a new apartment can be very sensitive and complicated. If both closures cannot be paid for at the same time, the seller must move from the existing property, store his belongings and stay in a hotel until the purchase can be made. This can be a very significant effort and cost to the seller. In some markets, it is customary for the buyer and seller to negotiate the holding three days after closing. This type of possession eliminates the seller`s risk in the event that the buyer does not close and the seller has to return to the house. In this case, however, the buyer`s risk increased. The buyer does not have the opportunity to see the house clean and empty before closing.
What happens if the seller does damage at the time of the extract? Or if the house burns between the closure and the property? What happens if the oven between closure and possession breaks down? But don`t take this agreement lightly – it has a huge impact and should only be used as a last resort. The parties should accept the terms of the contract before signing a contract – this will avoid a misunderstanding at the time of conclusion. Whatever the reason for an occupancy agreement after the conclusion, the agreement should address the following: Nevertheless, in many circumstances, especially in hot markets, the seller wants more time for the extract and could negotiate a longer occupation. The seller`s desire to stay longer creates a multitude of challenges that resemble the possession of three days above, but which is still growing. If the seller is still in the house, who will pay for insurance and incidental costs? Does the seller pay rent? What about bail? What happens if the water heater breaks and the seller is still in the house, but the buyer owns the house? What happens if the seller does damage at the time of the extract? One of the main problems with the business is that the seller is not evacuated and remains in possession after the termination date and the trust fund does not cover the seller`s costs and eviction costs.