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. An important area is which party remains responsible during this additional time. Sellers should be held responsible for injuries, losses, waste or damage to the property after closure. As a general rule, agreements contain a language that sellers need to assume their own liability insurance until they evacuate the premises to ensure that they do not expose themselves to a heavy personal liability or to the buyer by not terminating insurance during the extra period. Another possible concern occurs when the seller refuses to evacuate after the exit date after closing. The agreement must highlight the impact of this measure. All possible situations should be taken into account in the post-occupation agreement and the corresponding provisions should be included in order to exploit these opportunities. A post-occupancy contract is rarely used in Florida. Most of the time, the buyer wants the seller of the property to conclude.
While this certainly makes it easier for all participants, there are occasions when it is advantageous for the seller, and perhaps even the buyer, for the seller to occupy the property after the sale closes. The default modification of the As-IS contract stipulates in principle who will pay for the lawyer to design the post-occupancy contract. And if it is necessary to be approved by both parties. Sometimes the date on which the buyer and seller agreed to close cannot exactly match the timing desired by the parties. As a general rule, buyers want to occupy the property immediately after closing. Sometimes, however, if the house is in a desirable location and is at an advantageous price, a buyer may accept the seller`s request for a restocking agreement so as not to lose the opportunity to buy the house from another interested party who would succumb to the seller`s desires for occupancy. In these situations, potential sellers may not be forced to evacuate their homes immediately, but may remain on the ground as tenants. Sometimes it`s necessary for vendors so their children can finish the school year, or until the next house is ready, or just so they can pick up their belongings and move around without constraint. These types of diplomas are often referred to as post-occupancy agreements.