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Why homebuyers may need an occupancy agreement

On Behalf of | Aug 5, 2021 | Real Estate Closings |

Some people expect to receive the keys to their new property as soon as they sign the closing paperwork. However, in Georgia, there has long been a standing tradition of giving the seller several days after closing to complete their move.

This way, delays that change the closing date won’t prove massively disruptive for the seller. As someone buying a house, obviously you want to get into it as soon as possible once you’ve assumed your mortgage and signed all the necessary paperwork.

Still, you may need to make concessions about when you take possession to get a seller to accept your offer on a property. If they intend to stay after closing, then you will likely want to execute a temporary occupancy agreement with them.

What does this agreement do?

You and the seller need to create specific terms that protect both of you if they live in the property that is now technically yours after closing. Providing a timetable for how long they can stay, assessing a specific amount of rent per day and creating penalties in case they damage the property are all important considerations.

If the seller doesn’t have an incentive to move out as promised, you could find yourself in an awkward limbo where they haven’t left the property yet and you are ready to assume possession. Negotiating a temporary occupancy agreement will help protect you from inconvenience and compensate you if there are delays in the transfer of possession of your new home.

Understanding the various special documents often necessary in Georgia residential real estate sales can help you better protect yourself when buying a property.


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