Early Possession Agreement
What is this form?
The Early Possession Agreement allows a purchaser to take possession of a property before the official closing date. This agreement outlines the rental terms for the time between taking possession and closing the sale. Unlike typical sale agreements, this form focuses on the arrangements for early occupancy, addressing responsibilities and liabilities during this interim period. It is important to ensure affordability and clarity in terms of use before signing.
Key components of this form
- Date of the agreement, identifying when it was made.
- Parties involved, including names and addresses of both the seller and purchaser.
- Possession date, specifying when the purchaser can take occupancy of the property.
- Rental rate per day, defining the amount due for early possession.
- Conditions for risk of loss or damage, outlining responsibilities for property insurance.
- Terms for the walk-through inspection prior to taking possession.
- Consequences if the purchaser fails to close the sale, including potential eviction and daily rental fees.
Common use cases
This form is typically used in transactions where a purchaser wishes to move into a property prior to finalizing the sale. It can apply in scenarios such as when the buyer needs to relocate quickly or when repairs or renovations are planned before closing. Utilizing this agreement helps both parties navigate the legal responsibilities of early occupancy.
Who can use this document
This agreement is suitable for:
- Homebuyers who require immediate access to a property they're purchasing.
- Sellers who are comfortable allowing the buyer to occupy the property early.
- Real estate agents or attorneys facilitating property transactions with early possession arrangements.
Steps to complete this form
- Identify the parties: Fill in the names and addresses of the seller and purchaser.
- Specify the property: Enter the address of the property being sold.
- Enter dates: Indicate the date of the agreement and possession date.
- Set the rental rate: Define the daily rental fee the purchaser will pay.
- Outline conditions: State any additional conditions, such as proration details regarding expenses.
- Gather signatures: Ensure both parties sign and date the agreement for it to be legally binding.
Notarization requirements for this form
This form must be notarized to be legally valid. US Legal Forms provides secure online notarization powered by Notarize, allowing you to complete the process through a verified video call.
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Make edits, fill in missing information, and update formatting in US Legal Forms—just like you would in MS Word.
Download a copy, print it, send it by email, or mail it via USPS—whatever works best for your next step.
Sign and collect signatures with our SignNow integration. Send to multiple recipients, set reminders, and more. Go Premium to unlock E-Sign.
If this form requires notarization, complete it online through a secure video call—no need to meet a notary in person or wait for an appointment.
We protect your documents and personal data by following strict security and privacy standards.
Common mistakes
- Failing to specify the rental amount clearly.
- Not detailing the conditions for forfeiting possession if the closing does not occur.
- Overlooking the need for insurance on the property during the possession period.
- Not conducting a walk-through inspection before possession is transferred.
Why use this form online
- Convenience: Downloadable from any location at your convenience, eliminating the need for in-person visits.
- Editability: Customize the form to meet specific needs before finalizing.
- Reliability: Provided by licensed attorneys, ensuring that the agreement adheres to legal standards.
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FAQ
Aviara Real Estate, a California brokerage, says the sale might fail to go through if the buyer can't qualify for financing or is otherwise unable to meet the terms of the sale.Allowing a buyer to move in early can prolong or even sabotage the sales process.
Don't Buy or Lease A New Car. Don't Sign Up for Deferred Loans. Don't switch jobs. Don't forget to alert your lender to an influx of cash. Don't Run Up Credit Card Debt (or Open New Credit Card Accounts) Bonus Advice! Don't Chew Your Nails.
Do not touch your credit report. Don't even look at it.Do not establish new credit.Do not close any credit accounts.Do not increase the credit limits on your cards.Do not buy anything with a credit card or put an item on layaway.
The contract terms will determine when you can move in after closing. In some cases, it will be immediately after the closing appointment. You will receive the keys and head straight to your new home. In other situations, the seller may request 30, 45 or even 60 days of occupancy after the closing of the home.
Moving in before the closing date is also known as taking early possession of the property. It's generally not feasible to move in early unless the seller has already vacated the property.Buyers who start moving into the property before closing may discover certain drawbacks or problems with the property.
As soon as you sign a purchase agreement, it's a good idea to start packing and organizing your move so you can settle into your new home as soon as possible.
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. This type of arrangement can be a very positive selling method for a seller who needs to make a quick sale, but it can also have its drawbacks.
What is an early occupancy agreement? An early occupancy agreement is basically an agreement to rent the home you are going to buy before you actually close on the purchase. You agree to pay an extra amount of money per day to the sellers for the right to live in your new home before you legally own it.
