What are these agreements? A “pre-possession” agreement means an agreement by which the buyer can take possession of the property before the conclusion (or “pre”). A post-possession agreement means an agreement under which the seller may retain ownership for a certain period of time after the conclusion (or the “post office”). They are appointed a little heavily; It would be more sensible to describe these agreements as “pre-closing possession” or “post closing possession agreements”. Rent and security. If the buyer pays rent before closing for the use of the premises, the exact amount must be indicated in the agreement (either as a daily, weekly or monthly basis, or as a lump sum). Sellers should receive a deposit, as with any other type of rental. Typically, the biggest risk associated with a pre-holding agreement lies in the seller. If the buyer cannot close, the seller stays with a tenant. Because the seller is trying to sell, not rent, he doesn`t want to support a tenant, let alone the landlord`s obligations.
The buyer may either not be able or unwilling to leave immediately after conclusion. The seller will of course have a hard time finding another buyer until the tenant leaves. K. A seller or broker recommends that a client ask insurance, legal, tax and accounting professionals about the risks associated with holding or holding real estate. State of play. The buyer will probably have had the opportunity to visit the premises before the property is taken over. From the seller`s point of view, the agreement should indicate that the buyer has inspected the premises and agrees to accept the property in its current condition, except that the seller agrees to repair the specific goods listed in the occupancy contract in the event of an exception. From the buyer`s point of view, the buyer will not want to waive the seller`s guarantees in the sales contract regarding the condition of the premises at the time of closure (e.g. B that the roof is waterproof, that the devices are operational, etc.). The parties must agree on how to deal with this issue before the buyer receives the keys to the premises. A lease may be advisable, but a properly drafted pre-detention contract may be the best option.
Here are some fundamental issues that should be addressed in a pre-detention agreement. Date of termination. From the seller`s point of view, the agreement should stipulate that, if the sale does not end on the scheduled date, the buyer`s right to occupy the premises ends on that date. The seller may want the agreement to state that the cancellation provision (if the sales contract is included) does not extend the termination date (and in fact, the seller wants the buyer to remove the cancellation provision completely). The agreement should stipulate that, if the buyer has not concluded by the scheduled date, the seller may immediately take legal action for the restoration of the premises, without the need for prior notification. The parties should also discuss what happens if the sale does not end on time due to the seller`s delay. 2. Deliver the property before closing, unless the owner of the property or property that is transferred has expressly authorized it. Various provisions of the law that must be taken into consideration include restrictions on early rental, deposits and refunds (A.R.S. § 33-1321), the obligation for the owner (seller), the obligation of the owner (seller) to maintain the premises (A.R.S. § 33-1324) and the recourse of the owner in case of infringement of the tenant (buyer), A.R.S.
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