One of many ways to sweeten the deal…

One of the best parts of being a REALTOR® is giving people the keys to their newly purchased home. Sometimes that takes a while, but being patient is part of the purchase process. The right house is worth the wait, even a long wait after closing. Sometimes sellers are not prepared to move out when they sell and a solution is an agreement for them to occupy after closing, commonly called a rent back.

Christy and David had been searching for just the right place to call home. When they found a 1910 North Tabor bungalow with spacious rooms, built-ins and an updated bath, they were eager to make the strongest offer they could. Learning that the seller needed as much flexibility as possible, they offered terms that included an extended window for the sellers to occupy the house after closing and it made all the difference. They beat out the competition! At last their delayed gratification was satisfied~they got their keys.

Key points of a “rent back” agreement:

• Lenders typically allow up to 60 days before the new owner takes possession. If it is a cash sale it can be up to 90 days.
• Typically the seller reimburses the new owner their principal, interest, tax, insurance and HOA costs. The buyer can allow the seller to occupy after closing at no charge, or for a specific dollar amount.
• The Agreement to Occupy After Closing includes a lot of protective and clarifying language about whether or not there will be a security deposit, late fees for “rent” due and damages if the seller fails to leave on time.
• Generally the seller must obtain an insurance policy, naming the new owner as an additionally insured, to protect their possessions and provide liability protection after closing.

The four page document addresses a multitude of details to make sure everyone is on the same page. It covers the who, what, when and how much, and then some.

As excited as you may be to get in ASAP, keep in mind that understanding and making a rent back available to the seller my get you the winning bid.

Soon enough the day will come and you will get to make your new house your new home, and your new neighborhood your new turf. I bet David and Christy will become regulars at East Glisan PizzaLounge and all that Montavilla and Mt. Tabor have to offer. 

Bonnie Roseman

Principal Broker | Earth Advantage | ADU Specialist | OR

She/Her

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