Danielle,

This is a great question and definitely involves an attorney to protect your interests.

Although you can charge a per diem and keep money in excrow, what about insurance? Does the person you purchased the home from still have insurance that would cover any loss? Does your insurance cover you for loss if you're not the occupant of the home?

Again, an expert real estate attorney is where to go for answers.

Good Luck

In my experience, a use and occupancy agreement is used which is a little different than a lease. You definitely want the expertise of your attorney though to help you with the right solution and drafting the document to make sure the terms are satisfactory. Hope that helps.

Danielle,
Sellers, often requests the right in the sales contract to stay in the house after closing. This exposes the buyer to a great deal of risks and many buyer's attorneys do not adequetly address this. In most jurisdictions, especially NYC, it is difficult, time consuming and expensive to force a person out of a home.

I would only permit a seller to stay in possession after closing if I had retained a large escrow from the sales proceeds and provided for a very high daily rental rate to make sure there is a proper economic incentive for the seller to vacate the premises as agreed.

Talk to your agent about working a "rent back" agreement into the contract. And as others have mentioned, be sure an attorney is consulted as well to ensure all of your legal rights are covered.

Richard Schulman
Keller Williams Realty

Danielle,
It's called a "Holdover" or "Post-Closing" agreement. Your attorney will/should have a standard form that he/she likes to use. Usually not a good idea, but sometimes necessary. Good luck!

Robbie L. Vaughn, Esq.
Law Firm of Vaughn & Weber, PLLC
217 Willis Ave., Mineola, NY 11501
516-858-2620

This is the great thing about having attorneys and Realtors. You are paying them to perform professional services. ASK them!

The ONLY people that should advise you are those who have reviewed all the related documents.

Good luck.

Danielle, the purpose of using an attorney is for him or her to word any clause properly - no need to tell them how to do their business. No one here should be giving you legal advice, either.

Since you are the buyer, make sure to have your own attorney review any additional clause to the contract to make sure you are protected.

Best wishes..........

Hi Danielle,

Your attorney should draft a post occupancy agreement. The Seller would generally have to place 3-5% of their sale proceeds in escrow with their Attorney, which will be returned to the Seller once he vacates the home and the keys are delivered to the Buyer (new owner).

Generally the rent for the month is 1/30 PITI (principle, interest, taxes, & insurance) of the Buyers mortgage, although it can be another amount agreed by both parties.

The Buyer (new owner) will do a walk-thru when the Seller moves out, to verify the home does not have any damage, before instructing the Seller's attorney to return the money in escrow.
Best of Luck,

David Jaffe-Realtor SRES, CDPE
Coldwell Banker

Hi Danielle, you need a use and occupancy agreement - your attorney - your real estate attorney - can take care of that for you. He/she will be able to advise on language.

Best,
Jeanne Feenick
Unwavering Commitment to Service

Danielle, we are so not going to first-guess how an attorney should represent their client. Question=fail.

Discuss the issue with your attorney--he/she is the expert in all legalities associated with the wording of the contract, as it relates to the specific situation.

Please discuss with your atty. However the seller can stay in the house after the closing and pay the rent (agreed by both parties) to the buyer (new owner), atty will hold the money in the escrow account until the final walkthru and possesion is comes out ok. Good Luck..