What Is A Rent-Back Agreement?

A rent-back is a rental agreement between the home buyer and seller that allows the seller to continue to live in the home after the closing date in exchange for rental payments. The arrangement, also sometimes called a “sale and rent back” or a “post-settlement occupancy agreement," is usually temporary. It usually occurs when the seller experiences a delay in finding or moving into a new home.

Let's go over a few examples of when a rent-back agreement might occur. Take a look at these samples:

Example 1: You're building a new home and your contractor announces that he can't get enough workers to help him finish your home's construction. Due to this construction delay, you might need extended time in your original home – that is, the home you planned to sell.

Example 2: You, the seller, receive an offer on your current home, but you have not had time in your schedule to find a new home to purchase. In this situation, you might want to tap into a rent-back agreement.

Example 3: You have several school-aged children who would benefit from finishing out the year at their current school district. A rent-back agreement can give you extra time to let that learning continue.

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What Is A Rent-Back Agreement?

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