Every real estate deal comes with its own set of challenges, according to Maricopa realtor Dayv Morgan of HomeSmart Premier. Sometimes the issue is financing or inspections, but other times the biggest obstacle is simply timing.
Morgan recently described a home purchase in which a seller wanted a fast closing but was not ready to move out right away. To help make the offer more appealing, Morgan offered a post-possession agreement that allowed the sale to close in 10 days while giving the seller 30 additional days to stay in the home.
In Maricopa, Morgan said these agreements can be useful when sellers need time to find another home, wait for a new build to finish or coordinate a move without rushing. A post-possession agreement is different from a lease because it is written into the real estate transaction and does not create a landlord-tenant relationship.
The agreement lays out details such as insurance, utilities, maintenance, security deposits, liability and the date the seller must leave. Morgan noted that sellers benefit by getting their proceeds at closing while having more time to move, but buyers take on more risk after ownership transfers and should only enter into these agreements with a properly drafted contract.
According to Morgan, when both sides understand the terms, a post-possession agreement can solve a timing problem that helps get the deal done.
