Should a buyer allow a seller to remain in the home after the closing?
Usually not a good idea.
The parties enter into what is known as a “Holdover agreement” or “Post-closing possession agreement.” We don’t normally recommend these agreements, but they are sometimes necessary. Hopefully, the following will provide you with some insight as to why these agreements are not normally recommended by our firm:
The good
- The deal gets done sooner rather than later.
- The buyer leaves a hefty sum in escrow to cover “rent” and property damage.
The bad
- The seller needs more time to move or refuses to leave as scheduled.
- The escrow money is not enough.
The ugly
- The seller causes serious damage to the property.
- Legal action is required to recover possession of the premises.
- Legal action is required to resolve a dispute over the escrow funds.
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As always, The Law Firm of VAUGHN & WEBER, PLLC is here to assist you. We are conveniently located in the heart of Nassau County, Long Island, at 217 Willis Avenue in Mineola, NY. Contact us at (516) 858-2620 to speak with a real estate attorney.
