Montana Use and Occupancy Agreement by Purchaser Pre-closing
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How to fill out Use And Occupancy Agreement By Purchaser Pre-closing?
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FAQ
Even though early occupancy agreements are great for the buyer, they come with risks for the seller. In addition to all the risks a normal landlord would have, there is the additional risk of something going wrong with the buyer's mortgage and the buyer not being able to actually buy the house.
The term use and occupancy (U&O) refers to a real estate agreement between two parties that allows one party to use and/or occupy a property before ownership is transferred from one side to the other.
A condition precedent (CP) prior to closing is a condition that must be satisfied by a party to a transaction, failing which the other party is not bound to close the transaction .
Restrictive covenants are common in real estate deeds and leases, where they restrict how owners and tenants can use a property.
Early occupancy is a term that is used to describe when a seller of a home allows the buyer to move into that home before the actual sale is closed.
It's a pivotal time in the home purchasing process, because once you sign the paperwork, you can't go back to the seller with additional questions or repair requests. "A final walkthrough isn't required, it's just a really, really good idea," says Polly Watts of real estate brokerage service Sundae.
Early buyer possession should be handled with a written lease agreement that's separate from the purchase agreement. Sellers should run a thorough background check on their buyers before agreeing to early-possession terms.