Hi:
this is my first time encountering sellers wanting rent back. What verbiage do you put on the Purchase Agreement Addendum to ensure my buyer's being protected? I am clueless what amount to put on the compensation for buyer (how much per day). I know it's PITI, but how much? Do I ask the lender or just a ballpark amount?
Please help.....
TIA!

It is called a "Post Closing Occupancy Agreement". In FL an RE agent can get in big trouble with leases and you need to get a Lawyer to draw it up.

FYI the FL Supreme Court just changed all the approved leases that an RE agent can use (fill in the blanks only). It is NOT something you want to do so have your seller get a good RE attorney draw it up.

You can get an idea of rents by looking in your MLS for rental listings for similar properties but the buyer will have to make the final decision on amount. Also, check with your broker as they may have a specific position on this type of thing.

Good Luck

Yes, but also remember that all of this is negotiable. The rent amount could be above market if the owner's want to stay that badly. You can compare other rental rates on Craigslist or in your largest paper for the area.

Here in Minnesota you would sign an amendment to the purchase agreement called a Seller Holdover Possession agreement "Rent Back." Your realtor association should have a state approved form for this situation or also check with your broker. Keep in mind that if the buyer is financing with FHA I believe they will only allow a 60 day rent back before the buyer can move in.

I wouldn't put anything in the purchase agreement even if the state or association has a form for it. The seller wanting to rent back from the the buyer is a different transaction and agreement. Unless you want to get into property management. If someone asked me about this I would say. Let's do the sale, but you the buyer and seller come up with your own rental agreement that starts at closing. I would use traditional possession date of at closing by the buyer.

Here in New York, post occupancy agreements are common in order. It's usually several hundred dollars per day, with a hefty escrow.

I've only bought and sold 5 homes for myself; but almost all Transactions involved a little rent back paid for by the Sellers (sometimes me) or a little per diem rent paid by the Buyers for early occupancy. I thought it was more common than it apparently is.

Here in Vermont, at Closing we usually just arrive at a daily per diem reimbursement for ITI (no "P"; but it's often in there anyway) and multiply it by the number of days until the property is vacated. Sometimes a little money is set aside as a performance bond, or to guarantee the Sellers will really move out . . . . completely! If Sellers can get out by Closing, I don't even bring this issue up.

I'm reminded of a home I purchased in Massachusetts a long time ago. The Sellers wanted to stay fore a little over a week after Closing, so they'd be able to move directly into their new home elsewhere. When we made the proposal that they pay us a nominal rent of something like $42.00 per day, the Husband Seller blew a gasket, shouting something "I'm not going to pay rent to stay in my own house!"

Then the Attorneys had to show us their stuff and calm the guy down with diplomatic words like "Look Pal, after the Closing, it won't be YOUR house anymore; don't you understand ?"

I think the Seller was going to bash that Esquire one in the head. They had to take a recess out in the Lobby.

After that episode, I realized this is a tad more touchy a subject than many other more complicated aspects of our Transactions. If I sense that a rent back is going to be required, I'll spend a lot of extra time making sure that there is no mis-understanding left for us at the Closing. No point in working this hard only to have a Murder at the One Yard Line !"

There is always a rent back if the previous owner wants to stay past the date of the escrow closing. Period.

If he is going to be this big of a pain in the [censored] (which it sounds like he will be) and move the escrow date forward.