Sometimes, a buyer asks to occupy a property a few days, even a week or more, BEFORE they close on the sale and own it.
This is called Interim Occupancy.
It may be to avoid moving twice, during the interim between the sale of the buyer’s present home, and the purchase of the next home. Or, it may be to move a few items into the property before the closing date. Less commonly, the buyer wants to paint or refinish floors so that the work is done before moving in.
Joan Herlong, Owner and CEO of Herlong Sotheby’s International Realty, rarely suggest that her buyers request this, and she “can’t remember the last time she advised a seller-client to even consider allowing it.”
Why not?
“Anything that creates a grey area also increases risk,” says Herlong. “Lawsuits thrive in the shade of grey. Moving in or doing anything to a property that is not yet owned by the occupant is a risky business, especially to the seller.”
To minimize risk, the two parties sign an interim occupancy agreement, to protect the seller from liability, and to specify what the buyer can and cannot do to the house – right down to utilities, and the day and time it expires.
“Possession AT closing is the standard in South Carolina,” says Herlong, “because it equally benefits both parties.”
