Temporary lease agreement could be included in sales contract
Question: I am selling my house this summer, and the closing date is set for June 23. I would like to remain in the house through the July 4 weekend. Is it possible to close on time, receive my sales proceeds and remain in the house for a few weeks?
Answer: In a contract, nearly anything is possible! From the price and closing date to including a sofa in the deal, sellers and buyers in a transaction can make agreements as they see fit (as long as they are legal, of course). In the sales contract, you could include a clause indicating you will be holding over through July 6, and you can indicate the amount of compensation to be paid to the new owners, if any.
To protect both parties and ensure rights and responsibilities are clearly delineated, it is highly recommended to have a lease signed at closing, which can be referenced in your purchase and sale contract. Even though the rental is only for a few weeks, a lot can happen to a property in 14 days. By executing a written lease, the rights and responsibilities will be clearly defined, potentially avoiding any confusion on behalf of either party. For instance, the new owner may believe that you will simply continue your homeowner’s policy, but your insurance company may not allow you to insure a property you don’t actually own. The lease can explain these details. The more specific you can be upon the signing of the purchase and sale agreement, the less likely the chance of misunderstandings and future legal action.
Eric P. Feichthaler has lived in Cape Coral for 27 years and graduated from Mariner High School in Cape Coral. After completing law school at Georgetown University in Washington, D.C., he returned to Southwest Florida to practice law and raise a family. He served as mayor of Cape Coral from 2005-2008, and continues his service to the community through his chairmanship of the Harney Point Kiwanis Club KidsFest, which provides a free day of fun and learning to thousands of Cape Coral families, and funds numerous scholarships. He has been married to his wife, Mary, for 13 years, and they have four children together. Recently, he earned his board certification in Real Estate Law from the Florida Bar. He is also a Supreme Court Certified Circuit Civil Mediator.
This article is general in nature and not intended as legal advice to anyone. Individuals should seek legal counsel before acting on any matter of legal rights and obligations.