What is a use and occupancy agreement?

When a house is being purchased or sold, there is generally a set date that the current owner needs to have moved out so the new owner can move in. As many of us unfortunately have learned, life has bumps in the road that may prevent the current owner from moving out on time. Generally speaking, the person who purchased the home is given the keys to the house on the day of closing and will move in shortly after that. However, there are ways around the issue of not being able to move out on time but you have to get legal documentation in order to do so correctly. Whatever the circumstances may be, you may need to obtain a use and occupancy agreement that allows the current owner to stay in the home until their living arrangements have become situated and they are able to move out.

A lot of times, the closing date is planned around when the buyer must move in because they can no longer live in their current home. A use and occupancy agreement is a document signed between the two parties that will allow the seller to stay in the house for longer than expected. In addition, they will have to pay for the costs that are associated with living in the space. One of the most important factors of a use and occupancy agreement is for the buyer and seller to come up with a clear date that will determine exactly how long the party is allowed to stay in the home. There may be legal repercussions that are associated with the use and occupancy agreement if it is violated.

If you require experienced legal assistance for any of your real estate, bankruptcy or family law matters, contact the Mark Scollar Law Office today to schedule a consultation.