Draw Up a Rent-Back Agreement in Six Simple Steps!
Looking to buy a house and sell the one you’re living in, but the period between moving out and moving in gives you a headache? A rent-back deal is just what you need! Why not let us help you draft a rent-back agreement and have peace of mind while dealing with other tasks?
Selling your house and buying a new one requires impeccable timing if you want to avoid paying for hotels and looking for a place to stay until the other house is all set. That’s where a rent-back agreement comes in.
A rent-back agreement is a contract that people who sell their home and buy a new one use to ensure they have a place to stay until the newly purchased home is ready for moving in.
The rent-back agreement allows the seller to live in the home after selling it, essentially becoming the buyer’s temporary tenant.
If you want to write a rent-back agreement yourself, here are the key sections to include:
- Term duration
- Security deposit
- Entrance and storage
The price of the rent usually depends on the period the seller will stay in the sold place. For example, if the seller is staying for a few days, you can set a daily rate.
If the seller stays longer than a few days, the rent can be deducted from the purchase price. Determine the price in advance and include the details in the contract.
The involved parties should state the duration of the agreement, which usually coincides with the tenancy, and add the details to this section.
The buyer and the seller should reach an agreement on who will pay the utility bills. The seller’s name will likely still be attached to the electrical and gas bills, so it could be easier if the seller is the one responsible. Whatever decision you make, spell it out to avoid misunderstandings or miss payment deadlines.
One party will have to cover homeowner insurance during the rental period. The buyer will likely take over the policy, while the seller might need to get renter’s insurance to ensure his or her possessions are safe in the event of a disaster (e.g., flood and fire).
The seller will have to pay a security deposit to the buyer. Reach an agreement on the amount of the security deposit and include the details in this section. Some people choose to deduct the security deposit from the purchase price, but it may be wiser to keep these two deals separated.
The buyer should know whether they are allowed to enter the house during the rent-back and store their personal property, such as furniture. Make sure to elaborate on this and include all relevant details to ensure privacy.
The rent-back arrangement is beneficial for both parties involved. It gives the seller a place to stay until they can finalize the other purchase, and the buyer gets to make some money before they move in.
The agreement is also useful because it spells out all the crucial terms and conditions. Should any issues arise, you can always go back to the contract for dispute resolution.
You don’t have to struggle with writing legal documents because DoNotPay can create them in your stead! We developed a tool that allows you to avoid the unreliable contract templates found online and draw up various contracts in minutes!
The process is quite simple—you provide us with information, and we use it to create a personalized document in a snap. Sign up for DoNotPay and follow these instructions to get started:
- Log in and type the name of the document you want us to make in the search field
- Answer a few simple questions about the contract
Once you finish, we will create your agreement, and you can download or print it.
Check out the table below to see what legal documents DoNotPay generates for you:
|Business Agreements||Real Estate Agreements||Other Agreements|
Besides drafting the above-mentioned documents for you, we also offer practical step-by-step guides to other agreements, including booth rental agreement, buy-sell agreement, subcontractor agreement, lease extension agreement, and much more!
Although notarizing a rent-back agreement isn’t mandatory, it can be beneficial. Notarizing any contract gives you additional security should any legal issues arise.
You can get your rent-back agreement signed by a notary in a few clicks with DoNotPay! We integrated the two features to make the process easier.
You will get a direct link to an online notary’s timetable by email, and you can book your meeting in minutes!
The entire notarization process happens online via video call, so you won’t have to leave the comfort of your home. The signatures are provided digitally.
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