Occupancy After Closing for sellers, sometimes referred to as a rent back or a lease back, can sometimes be negotiated into the terms of a sale to take the pressure off the seller to move quickly. It can also add a buffer to simultaneous "sell/buy" transactions by allowing the seller to remain in the home for an agreed upon time after closing. Rent Backs can be advantageous for both the seller and the buyer in certain situations. For example, let's say the seller is building a home, but their home will not be completed by closing day. If agreed upon, a seller can remain in the home they sold for an agreed upon time to close the gap between sale day and move in day. This could also benefit the buyer if they are not in a rush to move into their home, or if it is a second home and will not be regularly occupied, as the seller would be paying rent to stay in the home longer than usual.
Rent Back timeframes range anywhere from 1 day - up to 90 days after closing...anything longer than 90 days is considered an actual rental and needs to be negotiated in a rental agreement outside the real estate transaction. Some loan programs will not allow a buyer to offer rent back longer than 60 days, so please speak with your Mortgage Broker if you are interested in this option. Occupancy After Closing can be complicated if not negotiated properly, however in Oregon, we have an addendum to help! As a buyer, Offering Occupancy After Closing to a seller can sometimes be a stand out feature when the seller is reviewing more than one offer on their home. For more expert real estate information, visit our Youtube channel here: https://www.youtube.com/@SALTAIRECoastalHomes. And while you're there, subscribe and smash that bell to stay up the date of all of our video content!
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