Question 1

What is a pre-closing possession agreement?

Accepted Answer

A pre-closing possession agreement is a contract that allows the buyer to take possession of the property before the closing date. This creates a temporary landlord-tenant relationship where: the seller is the landlord, and the buyer is the tenant. The agreement is separate from the purchase contract and governs the terms of the buyer’s temporary occupancy. In Florida: the FAR/BAR contract does not have a standard form for pre-closing possession (unlike post-closing possession), so a separate agreement must be drafted.

Question 2

How does pre-closing possession affect the purchase contract?

Accepted Answer

Contract impact: the purchase contract typically remains in full force (the pre-closing possession agreement is supplemental, not a replacement), the buyer’s inspection rights may be affected (if the buyer has already taken possession, the buyer may have difficulty claiming defects discovered after possession), the buyer’s financing may be affected (some lenders restrict pre-closing occupancy; the buyer should check with their lender), and the buyer’s insurance obligations may change (the buyer needs renter’s insurance during the pre-closing period; the seller maintains homeowner’s insurance).

Question 3

What happens if the sale fails to close after pre-closing possession?

Accepted Answer

Failed closing: the pre-closing possession agreement should specify: the buyer’s obligation to vacate (within a specified number of days, typically 5-10), holdover penalties (if the buyer does not vacate on time, a daily fee applies, typically 2-3x the daily occupancy rate), security deposit forfeiture (the seller retains the deposit to cover damages and holdover costs), and the buyer’s obligation to restore the property (to the condition it was in when possession was granted). If the buyer refuses to vacate: the seller must file an eviction action under Chapter 83.

Pre-Closing Possession Agreement

Pre-Closing Possession Agreements in Florida

Structure

Contract Impact

If Sale Fails

Related Terms

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