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February 15, 2019
Early Occupancy

Word of the day
Early Occupancy
Refers to the practice of allowing the buyer to take possession of real property before closing. Such a practice should be carefully evaluated because of the risks of mechanics’ liens, inadequate insurance coverage, and “buyer’s remorse” with possible lawsuit. In addition, the buyer who moves in is not generally subject to landlord-tenant rules, so if the buyer fails to buy, the seller may have a great deal of difficulty evicting the buyer. The parties should sign a written early-occupancy agreement to cover these risks.

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Written by
John Reilly
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