When a seller needs to stay in the home their selling beyond the close date, a “Seller’s Residential Temporary Lease” form is used (more commonly referred to as a “Lease Back” allowing them to lease the property from the new owners for a period of time. A frequent misunderstanding about this form is who maintains the property and is responsible for repairs during this period. In a normal lease, the tenant calls their landlord when something breaks. NOT IN THE TEMPORARY LEASE! The seller is obligated to continue maintaining the property as if they still own it. If you’re considering leasing your home back after close, it’s important to have a full understanding of the agreement. There are other important clauses in the agreement, but this seems to be the most misunderstood. For a more detailed explanation of how a seller (or buyer) lease back works, contact Elicia.
Learn More about the Risks to Buyers & Sellers in Contingent contracts here.
Learn More about when Earnest & Option monies are due here.