The Importance of a Post Possession Agreement


30 Day Occupancy After Closing: How a Post Possession Agreement Will Save You

During the stressful period of buying or selling a home, closing day may feel like the end of the transaction. But what if the seller needs more time in their home after the sale is completed? Here comes the 30 day occupancy after closing–a post possession agreement will save you!

What is a Post Possession Agreement

The post closing possession agreement, also called a post closing occupancy agreement, allows the sellers to continue living in their home for a predetermined time after the closing date. The seller transitions to temporary tenant while the buyer becomes a short-term landlord.

This occupancy agreement provides extra time for a seller who may need more time than given with closing. Some sellers may be waiting for their new home to close, have unexpected moving delays, need more time getting the sold property ready, etc. Whatever the circumstances, the post occupancy agreement can save the seller.

Growing Popularity

Post possession agreements seem to be growing more popular. This perhaps could be since they offer a flexible and convenient option in a market where timing is critical. Sellers benefit with a little extra time to hopefully create a more smooth and less stressful move. Buyers offer a more appealing bid when providing the offer in a competitive situation.

A post occupancy agreement offers a mutually beneficial real estate transaction. We will explore how a post closing period offers a smoother and more accommodating situation to both the seller and buyer.

Benefits of a 30-Day Occupancy for Sellers

One compelling reason to pursue the post possession agreement is the myriad of conveniences for sellers. Having a 30 day buffer after closing eases the stress of moving between homes.

Flexibility in Moving Out

An obvious reason sellers benefit from post occupancy agreements is the convenience of not being rushed to move out on closing day. The flexibility helps sellers facing situations such as a delay in availability for their new property, unexpected life events, or needing more time to organize affairs in their current home.

Reducing Stress of Immediate Relocation


Moving is one of most stressful life events

Moving homes ranks as one of the most stressful life events. Using a post occupancy agreement significantly reduces the stress for sellers. By allowing up to 30 days post closing, sellers can relocate with a safety net to move out without feeling rushed.

Smooth Transition in Complex Situations

Some sellers are involved in more complex real estate transactions. For example, sellers could be selling a home in probate, moving after foreclosure, or handling an estate after a family member’s death. Having extra days provides room for a smooth transition.

A post settlement occupancy agreement offers a perfect solution for sellers to feel less stressed in a major life transition. But how can buyer’s glean from such an arrangement?

How Buyers Benefit from Post Possession Agreements

Post occupancy agreements provide clear advantaged to sellers, but also present unique benefits for buyers. Both parties involved can come on top with this written agreement.

Making Offers More Attractive

During a competitive real estate market, home buyers need their offer to stand out. By agreeing to a post possession period, buyers offer an appealing incentive for sellers who may need more time in moving out. The flexibility offered by an occupancy agreement can trump one buyer’s offer over another that does not contain the post settlement agreement as an option.

Timing is critical in a real estate transaction

Planning and Preparation Time

For buyers, having a period of time between closing and taking possession provides time to prepare for any planned renovations. Rather than living in the home while trying to plan for significant remodels, the buyers can schedule the projects more efficiently by having them completed right before moving in.

Potential for Rental Income

During the post possession period, the buyer basically becomes a landlord to the sellers who become a tenant. The agreement potentially provides the new owner with some rental income during the agreed upon time. Even if the rent does not offset the mortgage completely, it can help mitigate the financial burden that could be brought on by this sales contract.

Insuring a Well-Maintained Property

With the seller still in the home after closing, the buyer can be at ease knowing the property will stay maintained until move-in. Sellers are likely to continue caring for the home and addressing any issues.

Building Goodwill

Establishing a post closing occupancy agreement can help establish a solid foundation to allow communication and respect throughout the transition. This goodwill serves both parties well if any unexpected issues or questions later arise about the property.

Post occupancy agreement sets expectations

By offering this occupancy agreement, buyers make their bids more appealing while gaining practical benefits to create a smooth move into their new home. Both parties profit from the post possession agreement.

Key Components of a Post Possession Agreement

However, in order to ensure that a post occupancy agreement truly benefits both parties, the terms and conditions need to be clearly defined. Several key components must be included in written agreements to protect the interests of both buyer and seller.

1. Duration of the Agreement

Specific Dates: Clearly specify the start and end dates for sellers to stay on the premises. This can range from a few days to a few weeks, but rarely exceeds 60 days to avoid tenant rights complications. State the reason for the occupancy and who/how many occupants are allowed, including pets, if any.

Flexibility Clause: Consider including a clause that allows for slight extensions if agreed upon by both parties, only under certain circumstances.

2. Rent and Security Deposit

Rent Amount: If compensation will be charged, determine the amount, whether seller will directly pay buyer the compensation, and whether seller will owe additional funds if seller remains in possession of the premises following the agreed upon move-out date.

Identify available legal remedies by which a holdover seller can be removed, which will depend on the applicability of the Arizona Residential Landlord and Tenant Act.

Security Deposit: Consider whether buyer will charge a security deposit to cover potential damages and how much, and whether buyer will hold the security deposit.

Buyer and seller may wish to address the manner in which unused portions of the deposit will be returned and whether such will be done in accordance of the Arizona Residential Landlord and Tenant Act.

3. Utilities and Maintenance

Utilities: Determine who will pay the utility bills and other services for the premises during the post possession term. The seller usually continues to pay for utilities.

Maintenance: Clearly outline the seller’s responsibilities regarding property maintenance and repairs. The parties may want to consider the amount the seller is responsible for paying for any maintenance or repairs during the seller’s occupancy.

4. Insurance

Determine insurance coverage during post possession

Coverage Details: Both parties should contact their respective insurance carriers to determine what types of insurance should be secured by buyer and seller, the appropriate coverage limits, and who should be named as an insured.

Liability insurance: They should also identify who is responsible in case of damage to the premises during the post possession. This provision should not be finalized until the parties have received guidance from insurance professionals.

5. Legal and Financial Responsibilities

Contract Clauses: Include clauses that address any breaches of the agreement, such as what happens if the seller fails to vacate the premises on the agreed upon date.

Legal Recourse: Outline legal steps that can be taken if either party fails to meet their obligations under the agreement.

6. Move-Out Condition

Property Condition: Agree on the condition in which the property will be returned to the buyer, including the cleanliness and any agreed-upon repairs.

Final Walk-Through: Schedule a final walk-through near the end of the post possession occupancy period to ensure all terms of the agreement have been met.

Post closing occupancy agreements provide security for both sellers and buyers. The written agreement also works to prevent potential conflicts and misunderstandings.

Buyers and sellers must work with experienced real estate agents and other professionals to draft an agreement that is thorough and specific to their needs.


As discussed, post possession agreements ensure smooth transitions for sellers who need more time to move post-closing, while also offering buyers benefits like potential rent income and a more appealing purchase offer.

However, remember to work with experienced real estate professionals like Unbiased Options Real Estate to navigate the complexities of post possession agreements successfully. Our team at Unbiased Options specializes in the legal, financial, and logistical aspects of handling such transactions.

Choose experienced real estate professionals

If you are contemplating selling your home and need a curated strategy for your unique circumstances, of if you are looking to buy and want to understand how to use a post possession agreement to your advantage, consulting with a knowledgable team is critical.

At Unbiased Options Real Estate, we are committed to providing you with the honest advice and tools needed for your real estate transactions. If you are ready to explore a post possession agreement or have questions in navigating the complexities of the real estate market, let us help you find your ideal solution!

The information provided in this blog article is for general informational purposes only and should not be construed as legal advice. Unbiased Options Real Estate does not offer legal advice and encourages readers to consult with a qualified legal professional regarding their specific circumstances.

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