The real estate market in the Bronx can be relatively competitive. Buyers often need to make certain concessions if they want their offer to stand out from multiple offers on the same property. Many buyers want to take possession of a property as quickly as possible, so flexibility regarding the possession timeline can be very attractive to a seller.
It can be difficult for them to arrange new housing on short notice after accepting an offer on the property. By allowing the seller to retain occupancy for a short time after the closing, buyers can make the transaction more convenient. Such concessions can help aspiring home buyers stand out from the crowd.
Is post-closing occupancy a good option for those hoping to acquire local residential real estate?
There are risks to post-closing occupancy
Allowing a seller to remain in the home where they have lived for years as they look for new housing can be a kind act. It can also help buyers make an offer that the seller finds attractive. However, the buyers need to be very careful in a post-closing occupancy scenario.
They may need to work with an attorney to ensure that they have a reasonable agreement in place. A specialized post-closing occupancy agreement, which is essentially a short-term lease, is typically necessary. The buyer may want to collect a security deposit to protect against property damages. They may have to conduct a post-closing inspection and then provide an inventory of damages to the seller after they move out of the home.
In addition to those responsibilities, the buyer also has to accept the risk that the seller may not vacate the property when they should. If they do not leave as arranged in the agreement, the buyer may have to move forward with eviction proceedings to gain possession of their home. They may also need to make arrangements for alternate housing because they cannot move into the property they purchased.
Buyers considering a post-closing occupancy arrangement may need assistance during a residential real estate transaction. From insurance and mortgage complications to the terms included in the documents they signed, they may need help protecting themselves. Obtaining the right support can make even highly-unusual residential real estate transactions less risky for a buyer.