Post-Closing Possession Agreements
Coordinating a simultaneous real estate sale and purchase is a stressful aspect when moving and relocating. Some sellers seek to maintain possession following closing for reasons including the need to sell before purchasing and additional time to move out of the property. There are considerations for both buyers and sellers to be aware of if you intend to agree to post-closing possession. While the Illinois 7.0 Multi-Board Contract addresses some considerations, it is not entirely comprehensive. A separate agreement prepared by your attorney documenting terms is recommended.
If obtaining financing, buyers must take into account lender occupancy requirements, which is generally 60 days post-closing. Additionally, parties may agree to a per diem charged to sellers, which is a daily fee to reside in the residence post closing. Sellers may also be required to set aside a portion of proceeds from the sale to be held in escrow to cover any damage to the property which occurs after closing.
Parties should ensure appropriate property insurance is in place during the post-close possession period. Once the post-close possession period expires, buyers are entitled and encouraged to complete a walk through to confirm the property is in materially the same condition before the escrow funds are released.
We recommend working with your real estate agent and attorney for a seamless transition post-closing.
Written By: Alexandra M. Siciliano/Attorney