Post-Closing Possession Agreements in Florida
A PCPA creates a landlord-tenant relationship post-closing. Fee: buyer’s PITI, market rent, or negotiated. FAR/BAR Paragraph 18(B) addresses briefly; most use separate detailed agreement. Security deposit: 1 month. Include: indemnification, renter’s insurance, and liability waiver. Seller pays utilities and damage beyond wear.
Fee Calculation
- Buyer’s PITI (carrying costs)
- Market rent (longer periods)
- Negotiated daily/monthly amount
Key Provisions
- Dates, fee, security deposit
- Utilities, maintenance
- Holdover penalties
Liability
- Indemnification clause
- Seller maintains renter’s insurance
- Liability waiver for pre-existing conditions
Related Terms
- Post-Closing Occupancy — Rent-back
Barnes Walker Real Estate
Barnes Walker’s attorneys draft PCPAs for Florida transactions. Request a legal inquiry for assistance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC