Post-closing possession agreements seem to be more popular than ever. The agreements offer the Seller flexibility to relocate and allow Purchasers to close before interest rates increase further. However, these agreements also expose both parties to potential liability. For example, a tree falls on the house after the closing while the Seller remains in possession, who is responsible and whose insurance policy will cover the loss? The insurance and indemnification clauses are often heavily negotiated between the attorneys. Another common question that arises is if something significant breaks such as the HVAC system or pool equipment, who is responsible?
Questions may also arise regarding the extent to which the Purchaser may access the property while the Seller remains in possession, e.g., for purposes of obtaining contractor estimates or even commence work. From the real estate broker’s perspective, it is helpful to finalize the business terms for the post-closing possession agreement (rent, security, term, number/frequency of visits, etc.) as part of the accepted offer. This will save the attorneys time and help ensure that there is a meeting of the minds before the parties engage counsel.
For questions regarding residential contracts of sale, post-closing possession agreements, or general information about our firm, please contact us at (914) 338-8050 or send an e-mail to email@example.com. We look forward to hearing from you.
Betensky Law PLLC
118 N. Bedford Road, Suite 302
Mount Kisco, New York 10549
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