Pre Possession Agreement New York

If you`re entering into a real estate transaction in New York, one document you should consider is a pre possession agreement. This agreement can help protect both the buyer and seller in certain situations. In this article, we`ll dive into what a pre possession agreement is, how it works, and when you might need one.

What is a pre possession agreement?

A pre possession agreement is a legal document that outlines the terms for a buyer to take possession of a property prior to closing. This agreement is typically used when a buyer needs to move in before the closing date, or when the seller needs to stay in the property after the closing.

How does a pre possession agreement work?

The terms of a pre possession agreement can vary depending on the specific situation, but typically the buyer will pay the seller rent for the time they occupy the property prior to the closing date. The agreement may also include provisions for utilities, maintenance, and repairs during the pre possession period.

Once the closing occurs, ownership of the property officially transfers to the buyer. The pre possession agreement will terminate, and the buyer will take full possession of the property. If the seller stayed in the property after closing, they would typically be expected to vacate by a certain date specified in the agreement.

When might you need a pre possession agreement?

There are several situations where a pre possession agreement might be necessary:

– If the buyer needs to move in before the closing date, for example, because they are selling their current residence and need to move out by a certain date.

– If the seller needs to stay in the property after the closing, for example, because they need extra time to complete a move or find a new home.

– If there are delays in the closing process, and the buyer or seller needs to occupy the property before the closing date.

It`s important to note that a pre possession agreement should only be used when it`s necessary and both parties agree to the terms. If you`re considering a pre possession agreement, it`s always wise to consult with a real estate attorney to ensure the terms are fair and protect your interests.

In conclusion, a pre possession agreement can be a useful tool in real estate transactions in New York. By outlining the terms for occupancy prior to closing, this agreement can help avoid misunderstandings and disputes between buyers and sellers. If you`re considering a pre possession agreement, consult with an attorney experienced in real estate law to ensure your interests are protected.