As a rule, the purchase or sale (P&S) contract stipulates that the seller clears the property before closing, removes all personal belongings and leaves only those items that have been agreed, such as the refrigerator, washing machine and / or dryer. The buyer of the house takes a final walk just before closing to ensure that the property is in the agreed state, sometimes swept away as a sweeper. The buyer of the house cannot move in or store personal belongings in the premises until the closure is completed, the deed is registered and the proceeds (money) are paid. Today I would like to mention a problem that has always been present and warn you against a sloppy solution, most often recommended by the real estate agents involved in the transaction. The question is how best to manage the occupation before concluding a real estate transaction. While there are several circumstances that lead to the need for a use and occupancy agreement, the most common is that the lender is simply not able to close the mortgage before closing. Another common problem is a delay due to a new building or when a house is significantly renovated. Under these conditions, buyers should be careful, because if the delay in closure is due to construction, it is very likely that the seller does not have an occupancy permit issued by the city or city; While it may be beneficial to both parties, a use and occupancy agreement under these conditions would likely be a violation of the law, as it is illegal to reside in real estate that does not have a permit for occupation. Sometimes the need for occupation before conclusion is known when the initial contract is written, but it often occurs during the period of due diligence before conclusion. It`s not uncommon for a real estate transaction to have hiccups on the way, which in some situations can prevent the expected closing date. Traditionally, a U&O agreement comes into play whenever an initial billing date is changed or delayed by other means. Most of the time, this agreement allows buyers who may have already abandoned their previous belongings to use their new home before officially taking over ownership.
This could mean that they rent the property for a few days to the seller or simply move their belongings before. A use and occupancy agreement – sometimes referred to as a U&O – is a temporary agreement between the buyer and seller that offers a party the right to use and occupy the property for a certain period of time….