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Click ‘Get Form’ to open the EARLY OCCUPANCY AGREEMENT in the editor.
Begin by entering the date of the agreement at the top of the form, followed by the names of the Sellers and Buyers.
Fill in the details of the Purchase Agreement, including its execution date and property address. This establishes context for your early occupancy.
Specify the Possession Date when Buyers will take possession of the Real Estate. Ensure this aligns with your agreement terms.
In the 'As Is Condition' section, confirm that Buyers accept the property as it is, while noting any latent defects that may exist.
Indicate whether an inspection has been completed or waived by Buyers, ensuring clarity on responsibilities.
Enter daily rent amount from Possession Date to Closing Date, along with tax responsibilities for both parties.
Complete sections regarding utilities, insurance obligations, and maintenance responsibilities post-possession.
Review and finalize all sections before signing to ensure all parties are in agreement on terms outlined in this document.

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What is the meaning of early possession?

An early possession or prior possession of a property by a buyer is what happens when the buyer gets the keys to the property after the contract is signed but before settlement is finalised (i.e., prior to settlement which usually takes 30 to 90 days from the time the contract is signed).

What if a buyer wants to move in early before closing?

If a buyer wants to occupy the property before closing day and the seller agrees to allow the buyer to take possession of the home early, the two parties would draft a pre-occupancy agreement to specify the conditions of the agreement. We recommend consulting a real estate attorney to help draft the terms.

Why should you never ever let buyers take possession before closing?

If both the buyer and seller are confident the sale will go through, a pre-occupancy agreement may be a way to avoid costly hotel stays or storage fees. Just be sure to include a clear exit plan in case things fall through.

What are the risks of early occupancy?

Allowing a new buyer to move in early exposes the seller to some docHub risks. For example, there can be delays in the underwriting process or last-minute mortgage denials. Unexpected title issues or the home not appraising as expected can also arise.

What does early occupancy mean?

Early occupancy, sometimes referred to as early possession, is when a tenant is granted access to part or all of a space they have leased prior to the leases start date. In most early occupancy cases, a landlord typically agrees to early occupancy as a way to encourage a tenant to sign the lease.