Early Possession Agreement

When it comes to buying or selling a property, there are a lot of important terms to understand. One such term is an “early possession agreement”. In this article, we’ll explore what an early possession agreement is, how it works and why it can be beneficial to both buyers and sellers.

What is an Early Possession Agreement?

An early possession agreement is a legal arrangement between a buyer and seller that allows the buyer to take possession of a property before the transaction is officially completed. This agreement can be beneficial for both parties, as it allows the buyer to move into the property before closing, and the seller to have less time to worry about maintaining and securing the property.

How Does an Early Possession Agreement Work?

An early possession agreement typically comes into play when the buyer needs to move into the property before the closing date. This could be because they need to vacate their current home or simply because they want to start living in the new home as soon as possible.

The agreement is typically drafted and signed by both the buyer and seller, and outlines the terms and conditions of the early possession. This can include details such as how long the buyer can stay in the property, what responsibilities the buyer has during this time, and what happens if the transaction falls through.

Benefits of an Early Possession Agreement

For buyers, an early possession agreement can be a huge relief. It allows them to move into their new home and settle in before the closing, which can be a stressful and chaotic time. It also gives them more time to take care of any moving-related tasks, such as arranging for utilities and setting up internet and cable service.

For sellers, an early possession agreement can be a great way to reduce the stress and hassle of maintaining a property while waiting for the closing date. It also reduces the risk of damage to the property or theft during the period between the buyer’s possession and the closing.

Conclusion

An early possession agreement can be a valuable tool for both buyers and sellers in a real estate transaction. It allows the buyer to move into their new home before the closing date, and the seller to have less worry and stress during this time. If you’re considering an early possession agreement, be sure to work with a qualified real estate attorney to ensure that all the terms and conditions are clear, fair, and legally binding.