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"Leasing Back" After Your Property Is Sold Sometimes it is helpful to sell your house before you truly wish to move. This frequently occurs when you're having a new home constructed, but aren't certain of the completion date. Is there any way you are able to sell your home so that you are sure of the funds available for the new purchase, but continue to stay in your old house until building of the new one is complete. Yes, there's with the leasing back strategy. Enter the Leaseback or Rent-Back Arrangement The particulars of the strategy vary from state to state, but in the strong seller's market we are experiencing, buyers will frequently agree to let the seller stay in the house for a period of time provided that rent is paid. In a competitive scenario, the buyer willing to do this will frequently possess the winning bid even though there is another offer as high as his. The deal covering the situation says the period of time the seller will remain. It can be performed with a certain date named or wording which allows the seller to stay around a certain date with all the possibility of her moving sooner. The total amount may be a fixed figure paid from the proceeds of settlement or a monthly sum, or a daily amount. It is usually, but not necessarily, tied to the total amount of the mortgage payment under the client 's new loan. Occasionally there is a deposit against damage, sometimes not. There's normally a clause saying the seller will hold the buyer harmless for any damage to himself or his property which occurs following the deal is consummated and before the seller moves. The attorney who draws up your contract offer can create such an agreement. If you are using online forms, you should manage to get one for this scenario. http://zordan.co/wiki/index.php?title=Advanced-Mortgage-Broker-Courses-and-Training-x If you're working with a property broker, they can manage it for you personally. An Example I have lately seen a very pleasant example of this thought in action. An elderly widow contracted to have a one level condo component built in a new community which supplies all outdoor maintenance. She'd had hip replacement surgery and desired to escape in the drawbacks of the property by which she had raised her kids. The house was large, had stairs and was found on a big, partly wooded lot with many mature perennials and shrubs. The home and garden were beautiful, but high care. Her contract to purchase required a succession of down payments as well as a firm indicator regarding her source of funds well before settlement on her new condominium. The widow put her house out there. A young couple with two sons was quite apprehensive to purchase it. The scenario was competitive. They made the widow an offer. She countered their original offer. She didn't raise their offer price, which was slightly below her asking price. She failed to believe the young couple would be eligible to get a larger loan. Instead, she did something quite creative. The widow countered with a proposal that she "rent back" to get an interval of "up to" a specific date (a date beyond her scheduled competition date on the condo) in exchange for a modest flat amount to be paid to the buyer at settlement. http://www.sssmep.cz/new/wadmin/index.php?title=Benefits-of-Mortgage-Calculators-i The entire rent rear interval was less than two months. The flat fee was less than the total amount of the brand new mortgage payment for the buyers. Nevertheless, since they made no payment on their new mortgage the initial month, it wasn't too far out of line. The couple genuinely wanted the home, so they accepted the counter offer. Another win, win scenario is made. The widow only needed to move one time along with the young couple got a house they probably would not have in a straight bid war. If you get in a situation similar to either the widow or the young couple, maybe you are able to work out a similar alternative.