Yes, the title is correct. You can stay in your house after your sell it. It’s called a post-occupancy agreement. In Colorado, this agreement is signed at contract and basically says that you, as the seller, can stay in your home for up to 60 days after you sold it (provided the buyer agrees). Now you could stay even longer and rent your home back from the buyer, but the state of Colorado post-occupancy agreement form only allows for 60 days by outlining specific terms that shall apply to both parties. For instance, the form spells out if the buyer wants the seller to purchase renter’s insurance, which party pays the HOA dues, the water bill, the electric bill, etc. Most of all, the form indicates how much rent the seller shall pay the buyer over the time period. It really is an easy, fill-in-the-blanks form which can be used for a short period of time without having to invest a lot of money in an attorney drawing up a long and elaborate lease.
I pass along this information at this time because it’s a full blown seller’s market in the lower price range. A lot of people would sell their home, but they don’t know where they would go. Why use the post-occupancy agreement to give yourself another 30 days? Think about this… when you put your home up for sale, you get a contract which usually is for 45 days before closing. Once you get under contract, use the 45 days, plus the 60 days to find a place and move. That’s 105 days or three and a half months to find the right home. Now, assuming it’s a full blown seller’s market like it is and you have multiple offers, find out which buyer wants your home bad enough and ask them to make a 60 days post-occupancy agreement as part of their offer. Now that’s leverage!! I guarantee you if the buyers really want your house and are willing to pay over asking price, they will also be willing to give you a post-occupancy agreement. In some cases, you may be able to even negotiate the 60 days rent-free or at an extremely reduced rate.
If you want to stay longer than the sixty days, again negotiate this with the buyer at contract and be prepared to have a lease drawn up in greater detail about the rent and the terms.
This is just one of the strategies we have for you at The Hawaii Team. If you want to as we say “take the money and run” then this is the market to do it. If you are afraid that you will not be able to find another home, then call us to hear about the other strategies we have for you.
Dan Polimino is a Broker/Owner with The Hawaii Team, Keller Williams Realty Maui. Contact The Hawaii Team at 720-726-1948, team@thehawaiiteam.com.
