Temporary Occupancy Agreement For Seller After Closing
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FAQ
If anyone makes a mistake, your closing might be delayed. Depending on your purchase contract and whose fault the delay is, you may have to pay the seller a penalty for every day the closing is late. The seller could also refuse to extend the closing date, and the whole deal could fall through.
Yes if the closing date is missed, the seller can cancel at will. However, there are many things to consider before deciding to end the deal. If there are no other interested parties, the seller may be more willing to grant an extension.
This practice has become so common that the Colorado Real Estate Commission created a formal rent-back agreement, also known as the Post-Closing Occupancy Agreement (PCOA), to help buyers and sellers enact rent-backs.
Related Definitions Delayed Occupancy Date means the date, set in accordance with section 3, on which the Vendor agrees to provide Occupancy, in the event the Vendor cannot provide Occupancy on the Firm Occupancy Date.
In general, the seller should disclose any damage to the home that will require repair and any defects, hazards, water damage or things that may negatively affect the inspection report, like a pipe blockage. Failure to disclose information may cause a buyer to file a lawsuit against the seller.
