Sellers often need to sell their existing home before purchasing a new home. If you have thought about selling your home but are hesitant because of the prospect of moving twice or finding temporary housing, there is another option. Rent back agreements give the seller extra time after closing to pack up and move to their new home.  Some examples of when rent-back agreements may occur include:

·         You’re building a new home and it may not be finished before you close on your old home.

·         You need extra time to search for and close on a new home.

·         You need extra time to finish out the school year.

A rent back agreement should be obtained in writing with the initial offer with a Post-Closing Possession Addendum to protect the buyer and the seller. The Post-Closing Possession Addendum should include:

·         Rental rate per day or month and how it will be paid.

·         Security deposit and where it is held.

·         Length of the agreement.

·         Utility payment responsibility.

·         Home maintenance responsibilities.

·         Insurance coverage.

If you have questions about the possibility of selling your home with a rent-back agreement, contact one of our agents at Right Size Realty.

References:

Brock, M (March 29, 2022). Rent-Back Agreements: Pros and Cons for Buyers and Sellers. Ricket Mortgage. Retrieved from: https://www.rocketmortgage.com/learn/rent-back-agreement

Colley, A. (March 27, 2022). What is a Rent-Back Agreement? A Godsend to Home Sellers Not Ready to Move. REALTOR.com. Retrieved from: https://www.realtor.com/advice/sell/what-is-a-rent-back-agreement/