Congratulations! Your seller clients have sold their home, and the buyers are ready to take possession. But first, your clients will need time to move out.
Your clients can lease the home they just sold to the buyers for up to 90 days. This is often called a lease back or temporary lease that can be negotiated as part of the sales transaction.
Use the Seller’s Temporary Residential Lease (TXR 1910) to set the terms. Rent is calculated on a per day basis and paid in full at the time of the funding of the sale. Rent can be set to $0, as the consideration for the sale of the home can be serve as consideration for the temporary lease. A deposit is required.
Depending on how the buyers funded the purchase, your sellers may not be able to lease for the full 90 days. Some lenders limit temporary leases to 60 days or less per their underwriting requirements, and these limits are usually evidenced by the deed of trust that the borrower/buyer signs at closing. Agents should not draft their own deeds of trust as that could be considered the unauthorized practice of law.
You may want to advise your clients of these potential limitations, as they may need to consider alternative options after closing. If your seller clients know they will need a lease back, suggest that they include that information in the MLS listing, so potential buyers can consult with lenders to determine lender requirements before submitting an offer.