Post Closing Occupancy Agreements in the State of Colorado

A post-closing occupancy agreement is an arrangement between the buyer and seller of a property where the seller lives in the home as a tenant while they are renting and buying time to find a replacement property, coordinate their move, etc. In Colorado, a typical post-closing occupancy period is up to 60 days after closing.

During the post-closing occupancy period, the seller will typically pay to cover the cost of utilities and other expenses associated with the property. Water is usually transferred into the buyers name after closing, so the seller usually pays for gas and electricity. The seller may also be required to provide a security deposit to the buyer to ensure that the property is returned in the same condition as it was when the buyer did their final walk through before closing. The buyer may also require the seller to keep their homeowners insurance policy active AND/OR require proof of renters insurance during their time in the home.

It is important to note that post-closing occupancy agreements are not always necessary or appropriate. If the seller needs to move out of the property quickly, for example, a post-closing occupancy period may not be needed. In cases of a post closing occupancy agreement, the buyer may need to arrange for temporary housing while the closing and PCOA process is completed.

Additionally, it is important for both parties to carefully review and agree to the terms of the post-closing occupancy agreement. This should include details such as the length of the occupancy period, the amount of rent and deposit to be paid, and any conditions or restrictions that may apply.

Overall, a post-closing occupancy agreement can be a useful tool for buyers and sellers in Colorado who need some flexibility in the closing and moving process. With the right agreement in place, both parties can have peace of mind and a smooth transition into their new home.