The real estate market in New York can be unpredictable, so it can be a bit of a gamble to list a property for sale. The person selling their home never knows how long it may take them to find a new place to live afterward.
Otherwise, they may know that they have a place to live, but they have a few months to wait before moving is an option. There are many scenarios in which you may move forward with a real estate transaction knowing that the seller wants to stay at the property after your possession date.
Executing a post-possession occupancy agreement, which some people call a post-closing agreement, is an important step to protect yourself if you will be a landlord before you occupy your new home.
You can protect yourself and cover your costs
Executing an agreement with the seller that allows them to stay at the property for a fixed amount of time after the possession date, which can help you get the seller to agree to choose your offer. You will have to negotiate a daily rent amount that the seller will pay to live at the property after the possession date.
You don’t want the rate you charge to be unfair, but you also need to consider the expense involved in covering the mortgage and other costs during the time that they remain at the property. Additionally, there may need to be some kind of deposit arranged to protect against the possibility of damage to the home.
Finally, it is usually important to determine an estimated end time after which the seller will need to leave regardless of whether they have made arrangements for new housing or not. While flexibility is important for a seller trying to negotiate an unpredictable real estate market, it’s also important for buyers to be able to count on a specific timeline for moving.
The right terms make all the difference
When negotiating the terms of a real estate transaction, including the right documents and the right terms will be crucial for your protection. Buyers on a competitive market have a lot to potentially lose.
If you don’t properly protect yourself in a real estate transaction, you can find yourself in an untenable situation or at risk of losing your earnest money. The more you consider the risks, the easier it will be to draft documents that properly protect you given your unique circumstances.
Learning more about the contracts that can protect you during a New York real estate transaction can give you confidence as you prepare to buy a home.