"Renting" After Your Home Is Sold

Sometimes it's helpful to sell your home before you really want to move. This often happens when you are having a new home built, but aren't sure of the completion date. Is there any way you can sell your home so you're sure of the funds available for the new purchase, but continue to live in your old home until construction of the new one is complete. Yes, there is with a rent back strategy.

The particulars of this strategy vary from client to client, but in the strong seller's market we're experiencing, buyers will often agree to let the seller stay in the home for a period of time as long as rent is paid. In a competitive situation, the buyer willing to do this will often have the winning bid even though there is another offer as high as his or hers.
The agreement covering the situation states the length of time the seller will remain. It can be done with a specific date named or wording that allows the seller to remain up to a specific date with the possibility of her or him moving sooner. The amount can be a fixed figure paid out of the proceeds of settlement or a monthly amount, or a daily amount. It is usually, but not always, tied to the amount of the mortgage payment under the buyer's new loan. 
There is usually a clause saying the seller will hold the buyer harmless for any damage to himself or his property which occurs after the sale is consummated and before the seller moves. The attorney who handles your real estate transaction can create such an agreement. If you're using online forms, you should be able to find one for this situation. If you're working with a real estate broker, he or she can handle it for you.
Happy house hunting or selling,

Latoya Wallace

Latoya Wallace

Real Estate Broker
CENTURY 21 Leading Edge Realty Inc., Brokerage*
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