Here’s a comprehensive list of possible questions about the Seller License to Remain in Possession Addendum, with explanations for each:
- What is the purpose of the Seller License to Remain in Possession Addendum?
It allows the seller to stay in the property for a specified time after closing, under agreed-upon terms, without creating a formal landlord-tenant relationship.
- How long can the seller remain in possession?
The addendum specifies the exact dates the seller is allowed to stay, typically a short period such as a few days or weeks after closing.
- Is there a cost for the seller to remain in possession?
The form may set a daily rate or lump sum payment, often referred to as a “license fee,” which is not considered rent but compensation for occupancy.
- Who is responsible for utilities during the possession period?
The addendum should clarify whether the seller continues to pay for utilities or if the buyer takes over.
- What security deposit is required, if any?
The agreement may include a refundable deposit to cover potential damage or failure to vacate on time, which is separate from the purchase price.
- Does the seller need to maintain insurance during the possession period?
Yes, the form can require the seller to maintain liability and property insurance until they vacate, even after title transfers.
- What condition must the property be left in when the seller vacates?
The seller is generally required to leave the property in the same condition as when escrow closed, subject to normal wear and tear.
- What happens if the seller does not move out by the agreed date?
The addendum can outline remedies, such as charging additional daily fees or taking legal action for unlawful detainer.
- Does this create a landlord-tenant relationship?
No, the form specifies it is a license agreement, not a lease, to avoid the legal protections that apply to tenants.
- Can the buyer access the property during the seller’s possession period?
The addendum can address whether and under what conditions the buyer may enter, such as for inspections or repairs.
- Who is liable for damage during the possession period?
The seller is typically responsible for any damage they or their guests cause while in possession after closing.
- How is possession handled if the seller vacates early?
The agreement may provide for prorated refund of fees or simply allow the seller to leave early without financial adjustment.
Disclaimer:
The questions and answers provided are for general guidance only and may not cover all details or apply to every situation. If anything is unclear or you need further clarification, please visit car.org for official resources and the most up-to-date information from the California Association of REALTORS®.
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