Buying real estate in Washington is a major commitment. Just the process of searching for a home and making an offer can take weeks to complete. Buyers then have to wait until closing to take possession of the property. Most buyers are eager to start moving in as soon as possible, but some sellers need more time to vacate the property than others.
With the high levels of demand on the market recently, sellers may not yet have a new place to live when they accept an offer on their homes. They may want to maintain occupancy after closing for a certain amount of time as they arrange to move elsewhere.
Making concessions about the possession date requires careful protection for the buyer. They may need to negotiate a secondary contract with the seller to protect against property damage, delays in taking possession and other challenges.
Post-closing occupancy involves renting the home
Once the real estate transaction occurs and the buyer signs the final paperwork, they are now the owner of the property. The seller no longer has any right to the property. If they negotiate a post-closing occupancy agreement, the seller effectively becomes a tenant. The buyer is now a landlord renting their own home to the previous owner. Most people buying a home don’t want to worry about acting as landlords before they can move into the property they just purchased.
There are many challenges inherent in a post-closing occupancy arrangement. Those challenges include ensuring the seller moves out on time, protecting the buyer from damages and collecting adequate compensation for the delay. Buyers may need to set a daily occupancy rate that is a bit higher than other rental arrangements. They may even want to negotiate a security deposit to protect against the seller damaging the property. Such scenarios require an inspection of the property and also an escrow account to hold the deposit.
Buyers facing a complicated transaction may need assistance understanding their legal obligations. They may also require support when putting together documents that properly protect them. Arranging to let a seller temporarily retain possession can be a major complicating factor during a residential real estate transaction. Aspiring Washington buyers often need assistance to protect them in unusual scenarios. As such, seeking legal guidance as proactively as possible is generally wise.