Street Address City State Zip First, the Post Closing Occupancy Agreement spells out to the both the buyer and seller, how long the Seller can remain in the property, who pays for the electric and gas, and water. Most causes are valid, yet some reasons are duplicitous and self serving. When a seller lists their home, there’s always the worry that they won’t be able to find a new home in the time they must be out of their old one. post-closing address of the parties at paragraph , or, if none is listed, to the attorney for such party, or, if none, to the address for such party recited in the original Contract. If you list it as an upfront requirement, you run the risk of decreasing the number of offers you receive. This Post-Closing Occupancy Agreement (Agreement) is entered into between (Seller), and 13 (Buyer), relating to the occupancy of the following legally described real estate in the County of 14, Colorado: 15 16 17 known as No. Post-Closing Occupancy Agreement 1. Not all buyers are good candidates for the post-closing occupancy agreement, and it’s important for you to understand your clients’ current living arrangements prior to suggesting it. The seller’s desire to stay longer creates a myriad of challenges similar to the three-day possession above, but further magnified. AGREEMENT TO OCCUPY AFTER CLOSING, Page 2 of 4 Property Address This form has been licensed for use solely by UserName pursuant to a Forms License Agreement with … SPECIAL STIPULATIONS: Additional Special Stipulations are or are not attached. And although Jim used a post-closing occupancy agreement as a tactic at a time when market inventory was low, it’s a real estate practice that’s generally good to know and keep in mind, because it can work in other situations. AGREEMENT TO OCCUPY AFTER CLOSING, Page 2 of 4 Property Address This form has been licensed for use solely by UserName pursuant to a Forms License Agreement with … For questions, e-mail Duane at DuaneDuggan@boulderco.com, call 303.441.5611 or visit boulderco.com. Per Jim Smith, Broker and Owner of Golden Real Estate, Inc., the tactic isn’t often used, but he and other brokers consider it an ace in the hole if navigated correctly. Street Address City State Zip However, later in the process, the seller is at the mercy of the buyer as all parties have already agreed to a specified time for closing and possession. A Post-Closing Occupancy Agreement is to be used only for short-term residential occupancy for a term not to exceed 60 days. What is a post-closing occupancy agreement? This will be crucial in the event of “stacked” or concurrent closings involving When the settlement takes place as planned, the agreement also includes the post-closing occupancy. Colorado Real Estate Commission has an approved form, Post Closing Occupancy Agreement, if the Seller is to remain in possession following Closing. What happens if the seller causes damage during move out? What happens if the furnace fails between closing and possession? Usually, buyers wish to occupy the property right after closing. THE PARTIES AGREE THAT THIS POST-CLOSING OCCUPANCY ARRANGEMENT IS NOT A LEASE AND THAT THE OCCUPANCY FEES ARE NOT RENT, BUT RATHER A TEMPORARY RIGHT OF USE FOR CONSIDERATION, TO ACCOMMODATE THE SELLER. The home is usually clean and empty for the home buyer’s walk through prior to closing. Duane Duggan has been a Realtor for RE/MAX of Boulder in Colorado since 1982 and has facilitated over 2,500 transactions over his career, the vast majority from repeat and referred clients. There is a Post- Closing Occupancy Agreement available through the Colorado Division of Real Estate website. As a home sale evolves, there might become a need for the seller to request a Post-Closing Occupancy Agreement from the buyer. Read more about his approach here in his column from May 11, 2017. Post-Closing Occupancy Agreement (All Prior Versions are Obsolete) (Revised 6/2015) Seller’s Initials Buyer’s Initials not limited to all refuse collection, lawn, landscaping, pool and/or spa/hot tub maintenance (including applicable motors, filter Then what happens if the seller causes damage when moving out? What happens if the water heater breaks and the seller is still in the house, but the buyer owns the house? This Temporary Occupancy Agreement shall survive the closing. In some markets, it is common for the home buyer and seller to negotiate possession three days after closing. As the real estate contracting process has evolved over the years, the Colorado Real Estate Commission has developed a standard form called the Post-Closing Occupancy Agreement (Seller Rent-Back Agreement). The Colorado Dream House Team is a luxury real estate team with Keller Williams Realty. Also, this document has an area to require the Seller to keep insurance on the property after closing. Post Settlement Occupancy Agreement This is a Legally Binding Agreement. The main reason the “Post-Closing Occupancy” form is limited to 60 days is that the buyer usually signs an act of trust during a closure managed by his owner, after which he promises to move into the house within 60 days. Listing Broker _____ Broker No._____ Sales Person Buyers who have a continuing post-closing relationship with a seller (i.e. Post Settlement Occupancy Agreement This is a Legally Binding Agreement. Does the seller pay any rent? If the Post-Closing Occupancy Agreement is for 90 days, the buyer will be in violation of the terms of the deed of trust. The Post-Closing Occupancy form can be attached to the contract initially, possibly to make the more offer more attractive to the home seller if the seller hopes for a longer time to deliver possession. There is no question who owns the home when ownership is transferred. DPR Realty, LLC. Post-closing occupancy agreements have been around for years. Who will maintain, repair, or replace the operating systems of the home, such as the furnace, if required during the post-closing period, Specifying a notice period if the home buyer needs to enter the property, Amount of the rent home seller will pay, and how and when it will be paid, A specified dollar penalty if the home seller is unable or won’t deliver possession at the agreed time, Agreement as to who will pay for water, sewer, gas, electric, and any other services the property uses, A security deposit if the seller were to cause damage upon move out, Agreement as to insurance coverage for both seller (now a tenant) and the buyer (now a landlord). If they’re living at an extended-stay hotel, Airbnb, month-to-month apartment, etc., and can lengthen their stay or find another budget-friendly, temporary living arrangement, the post-closing occupancy agreement could be something to consider. This agreement is between _____, Buyer and _____, Seller under Purchase _____, 2. A post-closing occupancy agreement is when a seller retains occupancy of the property for up to 60 days after closing occurs, the tactic isn’t often used, but in this market, brokers consider it an ace in the hole, if navigated This form outlines the agreement between the home buyer and seller to cover all the issues involved in post-closing occupancy. The main purpose of using this agreement is … When closings are delayed, or fail, an adequately drafted agreement protects both parties. Street Address City State Zip The main reason the “Post-Closing Occupancy” form is limited to 60 days is that the buyer usually signs an act of trust during a closure managed by his owner, after which he promises to move into the house within 60 days. post-closing address of the parties at paragraph , or, if none is listed, to the attorney for such party, or, if none, to the address for such party recited in the original Contract. POST-OCCUPANCY AGREEMENTS IN FLORIDA Occasionally, the date on which buyer and seller have agreed to close on may not exactly align with the desired timeline of the parties. This will be crucial in the event of “stacked” or concurrent closings involving But be careful, such an agreement should only be used as a last resort. Have You Considered a Post-Closing Occupancy Agreement. One tool that is often suggested is a post-closing occupancy agreement. Pre Occupancy Agreement Colorado Non classé If the seller, after being discouraged from issuing a pre-commitment, is always willing to authorize the buyer to take possession of the property before closing, then the broker should advise the buyer to cooperate with a lawyer, or the broker should work with a lawyer to structure the lease. 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