Although the post-occupancy agreement looks like a lease, it is important that you understand the difference between the two. A tenancy agreement confers certain rights on occupants legally referred to as “tenants.” Conversely, a post-billing contract does not make residents “tenants,” which means that residents have only the right to remain on the land. During the occupation, the seller pays a deposit and a daily allowance to the buyer, both agreed in advance and included in the post-billing contract. Suppose a seller and buyer agree to close the transaction on August 27, but the buyer gives the seller three days to move after closing. The three days following the closure is the occupation of the mail and, as such, a written agreement must be concluded with the contract. This bilateral agreement stipulates that sellers receive tenant insurance for the three days they have at home. He also talks when he is charged the rent to the seller, if a deposit is needed to cover the costs of the supply company, and what happens in case of home damage. Sometimes the date on which the buyer and seller agreed to close cannot exactly match the timing desired by the parties. As a general rule, buyers want to occupy the property immediately after closing. Sometimes, however, if the house is in a desirable location and is at an advantageous price, a buyer may accept the seller`s request for a restocking agreement so as not to lose the opportunity to buy the house from another interested party who would succumb to the seller`s desires for occupancy. In these situations, potential sellers may not be forced to evacuate their homes immediately, but may remain on the ground as tenants. Sometimes it`s necessary for vendors so their children can finish the school year, or until the next house is ready, or just so they can pick up their belongings and move around without constraint. Breathe in, be compassionate and consider the feelings and circumstances of other parties.
Buyers and sellers can move forward with confidence and work together for a consensual end to the agreement after the occupation. Although you have the right in Colorado to use and exercise a post-occupancy agreement, we strongly recommend that you do not do so. Last year, we saw serious problems in and around the rising postal occupancy agreements.