So the seller of the home you bought needs ‘Temporary Occupancy’…What’s that mean? Learning a bit about this topic will make you more confident when trying to decide if this option is right for you in your real estate transaction! What is Temporary Occupancy post-closing for the Seller?
What is Temporary Occupancy post-closing for the Seller? Temporary Occupancy is becoming more and more common– especially in this Seller’s Market! Here’s why!
What is Temporary Occupancy?
Temporary Occupancy means buyers do not take possession immediately after closing. They go to closing, purchase the home, collect 1 set of keys, and the seller stays in the home post-closing for an agreed upon period of time.
There are 2 main reasons a seller could need temporary occupancy:
01. Time to purchase a new home: Sellers (usually) can’t move out of their old home until they close on their new home. Many times, they need the funds from their current home to purchase their new home. In most cases they can not move into their new home until they have closed on it so they may need a temporary occupancy to have time to do so.
02. New home renovations: The sellers new home could require renovations, meaning they’ll need to stay in their old home until construction is complete. This could be a short period or a longer period of time. Most lenders will allow sellers to stay in a home as long as 60 days post closing without affecting the terms of the loan.
If a Seller is requesting a temporary occupancy, you will know so before going binding on your contract. They may have their agent state that term in the listing, or they could request it during negotiations. Looking to get started with an S&C agent? Learn more here!