Seller occupying for 2 months

[Dilini Peiris]

We just purchased a property through a whole seller, not closed yet, but seller has given us permission to start on rehab, but is wanting to occupy the property for 2 months. What paperwork do I need to set up to ensure they will leave in 2 months and should I get specifics of what rehab we are allowed to do while he is living there? And if so how and what kind of agreement do we need ? 

[Jackson Ebersole]

Hi Dilini,

To make sure everything goes smoothly while the seller stays in the property for two months after your purchase, you'll want to set up a couple of agreements. 

First, create a Post-Closing Occupancy Agreement that clearly states when the seller needs to move out, any rent or fees they'll need to pay during their stay, and what their responsibilities are regarding utilities and maintenance. It’s also a good idea to outline what happens if they don’t leave on time.

Next, draft a Rehab Permission Agreement that details what renovations you can do while they’re living there. This should include which areas you can access, what hours you can work, and any safety measures you’ll take. You might also consider holding back some of the sale proceeds in escrow until the seller has moved out as agreed.

Make sure your insurance covers any work being done while the property is occupied, and check local tenant/landlord laws to avoid any issues. It could be helpful to have a real estate attorney look over these agreements for added security. 

Good luck with your rehab project! Feel free to reach out if you want to discuss anything else.

Jackson