What Is a Rent-Back Agreement?
A Godsend to Home Sellers Not Ready to Move.If you’re buying a new home while selling the one you’re currently living in, you’ll definitely be glad to know what a rent-back agreement is. For the buyer, offering a rent back after closing agreement can have a couple of big bonuses.
- For one, if it’s a competitive market, an offer that’s flexible on move-out dates might very well have an edge. And the rent that the seller would pay the buyer could help recoup those hefty closing costs.
- How a rent-back agreement works Like the name implies, rent-back agreements are legally binding agreements made in writing between the buyer and the seller. Both parties need to decide on a couple of issues, namely how long the seller will need to stay in the house after closing and how much rent the seller will pay to be there.
- What rent-back agreements mean for the buyer If you’re not in a rush to move in, offering a rent-back agreement can help you get your dream home.