A post possession agreement in Arizona is a legal document that allows the buyer of a property to take possession of the property even before the closing of the sale. The agreement outlines the terms and conditions under which the buyer will occupy the property and specifies the date when the possession will be transferred to the buyer.
A post possession agreement can be useful for both the buyer and the seller. For the buyer, it provides them with the opportunity to move into the property before the closing, which can be advantageous if they need to relocate quickly. For the seller, it allows them to retain possession of the property until the closing, which can be helpful if they need additional time to move out or to complete repairs.
To ensure that the post possession agreement is valid and enforceable, it is recommended that both parties work with a real estate attorney to draft the document. The agreement should include the following information:
1. Date of transfer: The date on which the possession of the property will be transferred from the seller to the buyer.
2. Term of possession: The duration for which the buyer will occupy the property before the closing.
3. Rent and utilities: The amount of rent that the buyer will pay for the period of post possession, as well as who will be responsible for paying the utilities.
4. Security deposit: The amount of security deposit that the buyer will pay to the seller, which will be returned to the buyer upon their vacating the property.
5. Maintenance and repairs: The responsibilities of both the buyer and the seller in terms of maintaining the property during the post possession period.
It is important to note that a post possession agreement is not without its risks. For example, if the buyer causes damage to the property during the post possession period, the seller may be responsible for the cost of repairs. To mitigate these risks, it is recommended that both parties conduct a walkthrough of the property before the post possession period begins and document the condition of the property. Additionally, the agreement should include a provision outlining the consequences for failing to comply with the terms of the agreement.
In conclusion, a post possession agreement can be an effective tool for both buyers and sellers looking to facilitate the sale of a property in Arizona. However, it is important that both parties work with a real estate attorney to draft a comprehensive agreement that protects their interests and outlines the terms and conditions of the post possession period.