Seller License To Remain in Possession Addendum
In a real estate transaction it is not uncommon for the seller to wish to remain in the property for some period of time after the close of escrow. One potential reason for this could be that the seller is moving and needs more time to prepare, or to solidify the deal on their next home. This situation became frequent enough that the California Association of Realtors® (C.A.R.) produced a contract called the Seller License to Remain in Possession Addendum. This C.A.R. form, often reffered to as the SIP, is intended for a short-term occupancy after the close of escrow. In this case, short-term occupancy is considered thirty days or less. If a seller should require a longer period of time, C.A.R. has a more detailed agreement called the Residential Lease After Sale, often reffered to as a seller leaseback.
The short-term occupancy agreement, or SIP, allows the seller to specify their occupancy terms as either number of calendar days after close of escrow, or up until a specific date. The consideration section of the agreement indicates the amount to be charged for the given time period whether in the form of cost per day or total cost. It also accounts for a late fee if a payment following the close of escrow is overdue. In addition, this contract covers who shall pay for utilities and maintenance, states that the buyer shall be allowed entry for a variety of reasons with the required 24 hours notice, instructs that the seller shall not assign or sublet any part of the property, and advises the seller to obtain insurance for personal property during this period.
Navigating through the labyrinth of details and information of a transaction is exactly why you, savvy buyers and sellers, need an experienced team. The SARKISSIAN + PERERA GROUP is here to help guide you through this process and ensure that you achieve all of your real estate goals!
© 2018 Berkshire Hathaway HomeServices California Properties (BHHSCP) is a member of the franchise system of BHH Affiliates LLC. Any unauthorized reproduction or use of this material is prohibited. This information is believed to be accurate as of June 1, 2018. It is not intended as a substitute for legal advice in individual situations, and is not intended to nor does it create a standard of care for real estate professionals. BHH Affiliates LLC and BHHSCP do not guarantee accuracy of all data. Information has been obtained from various sources and will not be verified by broker or MLS. *Sources: TheRealDeal.com, PasadenaNow.com, Car.org, RealtyTimes.com, TimeOut.com