Post Closing Occupancy Agreement Michigan

In today`s housing market, mortgages are currently at an all-time low and homes are selling at a breakneck pace. Ask any real estate agent and they will confirm that the demand for housing far exceeds supply! Because of the strict criteria of credit quality, income verification, etc., used by mortgage brokers who try to qualify potential sellers, as a result, buyers are able to obtain financing or make cash contracts to close to homes in record time. Most buyers want to occupy the property right after closing. However, if the house is in a desirable location and is offered at a decent price, a buyer may be forced to accept the seller`s request for a re-enmanation agreement or he may lose the chance to buy the house from another interested party, as there may be several offers and is usually submitted and verified by brokers. As a result of this type of leverage for sellers in desirable areas, potential sellers may not have to leave their homes, but may instead allow their children to finish the school year, wait until the next home is finished, or simply collect personal belongings and move in a casual manner. A post-billing contract allows a seller to continue to reside in his or her home after the count, as part of an agreement in which the seller essentially rents the house from the new buyer. 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. It is advisable to include in the agreement a provision stating that the amount of liability of the seller is not limited to the amount held in trust. These types of agreements, known as post-occupancy agreements(sometimes called rent-back agreements), are agreements in which the buyer agrees to allow the seller of the property to remain in the house after the billing date. These are not cutting and insertion chords. Instead, some kind of legal finesse is needed to ensure that all parties are protected, since there may be potential liability if these agreements are not properly structured and verified. One of the main concerns that could be problematic is liability during this additional time. Sellers should be held responsible for injuries or losses or damage to property closures.

Sellers should take this into account and have their own liability insurance until they evacuate the premises to ensure that they do not face a heavy personal liability by not terminating insurance during the extra period. Overall, a property contract may work well if the parties are reasonable and act in good faith. However, problems can arise when the buyer inspects the premises after the seller has evacuated and damage is found. This may commit the fiduciary bond until the parties agree to an appropriate accommodation for such remedies. 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.