If you have ever worried about the transition between your former house to your new home, then learn how a pre-occupancy agreement could help you!
We all know that in real life the transition between two homes isn’t always as simple as it seems. Sometimes sellers who list their houses might need a little bit longer in their homes than what is written in the contract. For example, a seller is building a new home. They list their current one and accept an offer with a closing date that aligns with when the new home is suppose to be ready. But, delays in construction push the completion date back a week at the new home. Now the sellers wonders where their family and things are going to be for a week. Likewise, buyers might need to move into the new home a week early because their former rental agreement is expiring. In these cases, Realtors® can work with sellers and buyers to create pre-occupancy or post-occupancy agreements.
Pre-occupancy or post-occupancy agreements are essentially the same idea with a different name. Pre-occupancy and post-occupancy agreements refer to who is staying in the home after closing day. A pre-occupancy agreement happens when the sellers agree to allow the buyers to move into the home before closing. During this time the buyers are like renters. They pay rent for living in the home until they take ownership of the home. A post-occupancy agreement occurs when the sellers remain in the home after closing. In this case, the sellers pay rent to the buyers for the time that they spend in the home after settlement.
It is important to note that during this time whoever is renting the home needs to treat it as a rental. This means that any changes that the buyers may want to make to the home needs to wait until the buyers officially own the property. Likewise, sellers renting the home need to leave it in the same condition as closing day.
Pre and post occupancy agreements can be helpful to buyers and sellers if they find themselves in a situation where they may not have a new home to transition to for a few days or weeks. Letting your Realtor® know that you are interested in pursuing this option early on in the home search process is important. The Realtor® can find out early on if a post-occupancy or pre-occupancy agreement is an option for the other side.
I have helped many people around Locust Grove ease their transition from one home to the next with these agreements. When both sides are able to accommodate a pre-occupancy agreement, it really helps to lessen the stress of the buyer or seller. You don’t have to worry about where to find short term storage for your belongings or yourself. If you are interested in pursing this option in your home search, give me a call and we can discuss the best options for you!
