In real estate negotiations, a seller may ask to stay in the home after the closing date, after the buyer officially owns it. Lead Attorney John Aylesworth gives an overview of post-closing possession (aka rent-back) agreements and the reasons a seller might ask for one.

When you're selling your home, the closing date on the purchase contract might be earlier than when you can realistically pack up and move. If that's the case, you might ask the buyer for post-closing possession.

What is post-closing possession? It's an agreement between the two parties that allows the seller to remain in the property after the closing: for a specified period of time, under strict conditions, and usually at a daily cost. 

While this may sound like a lease, this type of agreement is only for real estate transactions. Post-closing possession agreements are specific to the property, seller, and buyer. And the details must be clearly spelled out to avoid confusion and issues. 

Post closing possession is increasingly common in a competitive real estate market that has low inventory, quick closing dates, and demanding negotiations.  

Why would sellers need more time? Here are common reasons sellers want to remain in the property:

The house sold quickly. If the home sold faster than expected, the seller may need time to finalize their next move.

The seller is downsizing or retiring. It can take more time than expected to sort through and organize a lifetime of belongings.

To fit the school calendar. Parents with school-age children may want to avoid disrupting the school year.

They are relocating. The seller might need to align the move-out date with a new job or other logistics.

Their new home is under construction. A seller who is building a new home may ask to bridge the period between sale and completion.

Unexpected circumstances. Personal events, like illness or death, might require additional time to finalize the logistics and details.

Whether you are selling or buying real estate, it’s imperative to have a skilled real estate attorney at your side—whether you need post-closing possession or not. 

I’m John Aylesworth, partner and lead attorney. Our firm focuses on real estate transactions in the Chicago area. We’ve helped hundreds of clients successfully work through post-closing possession. 

Feel free to schedule a call with me or Mike to talk about buying and selling real estate.