But the agreement after the occupation can become complicated and chaotic, especially if the buyer and/or seller do not understand how it works. Here are the key points you need to know before signing a post-occupancy contract. At this point, you may be wondering why someone would want to go through this for only three days. Why wouldn`t the sellers move on closing day? The main reason for the occupancy rea agreement is that a seller can have his whole house and seinedesin in the moving truck in the ride. Let`s say you do the closure only to find out that there is no closure because the buyer did not get their credit, and they have to lose the house. Yes, they have serious money to keep, but now you have to unpack the truck, pay the movers and go home. With a post-occupancy contract, sellers can be confident that their home closes before they even pack a box. Before entering into a post-occupancy agreement, ask yourself these questions, as the real estate allocation 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). This form describes the agreement between the buyer of the house and the seller to cover all issues related to post-occupancy occupation. In the case of a three-day detention, as described above, this agreement is the perfect solution to define a plan after the occupation closes. Even something less extreme than a burning house can raise some tricky questions in a post-occupation situation.
It is essential that the buyer and seller accept and sign a post-billing contract. Owner`s insurance does not always cover claims that occur during a seller`s occupation, so the contract protects the buyer from events that may occur during the seller`s occupation. This legally binding document sets out the responsibilities of the seller and buyer. The standard GCAAR post-count occupancy form states: “From the date of the billing, the buyer will purchase and maintain property insurance, the buyer`s policy being primarily in the case of other available insurance.” (form #1309, paragraph 6.) 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.