Seller Remaining in Possession
Seller Remaining in Possession
Any time the Seller remains in the property after Close of Escrow, it is technically a rent-back – even if there is no money involved.
RPA 3.M and 7.C. – Seller remaining in possession After Close Of Escrow: If Seller has the right to remain in possession after Close Of Escrow, (i) the Parties are advised to sign a separate occupancy agreement such as C.A.R. Form SIP, for Seller continued occupancy of less than 30 days [which means 29 days or less], C.A.R. Form RLAS for Seller continued occupancy of 30 days or more; and (ii) the Parties are advised to consult with their insurance and legal advisors for information about liability and damage or injury to persons and personal and real property; and (iii) Buyer is advised to consult with Buyer’s lender about the impact of Seller’s occupancy on Buyer’s loan.
SIP [Seller License to Remain in Possession] is to be used for 29 days or less. [Never use for 30 days!]
RLAS [Residential Lease After Sale] is to be used for 30 days or more.
- Do not use other Broker’s forms for rent-backs [i.e. Coldwell Banker Occupancy Agreement. Only use the CAR forms SIP or RLAS].
- It is advisable to write in the Offer or Counter Offer that either the CAR form SIP or RLAS will be used.
TOPA [Tenant Occupied Property Addendum] RPA 4.A. Seller shall disclose to Buyer if occupied by Tenants or anyone other than the Seller. RPA 7.A. states that “Property shall be vacant at the time possession is delivered to Buyer.”
Occupancy Prior to Close of Escrow
Keller Williams Policy is NOT to allow occupancy prior to Close of Escrow. There is a CAR form for it, but do not use it. There is too much liability involved whenever this type of occupancy occurs.