The Post Settlement Possession Addendum To Agreement Of Sale is commonly used when sellers need additional time to vacate the property after closing, often due to construction delays on their new home or other logistical challenges. This document, governed by U.S. state-specific real estate laws, provides protection for both parties by clearly defining the terms of continued possession, including daily rental rates, maintenance responsibilities, and insurance requirements. It's essential for preventing disputes and ensuring a smooth transition of property ownership while accommodating the seller's temporary needs.
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1. Parties: Identifies the buyer and seller of the property, including full legal names and addresses
2. Background: References the original Agreement of Sale and explains the need for post-settlement possession
3. Definitions: Defines key terms used throughout the document including 'Possession Period', 'Daily Rate', etc.
4. Possession Terms: Specifies the duration of post-settlement possession and any extension provisions
5. Compensation: Details the daily/monthly rate for possession and payment terms
6. Property Condition: Outlines responsibilities for maintaining the property during possession period
7. Insurance Requirements: Specifies required insurance coverage during the possession period
1. Utilities: Addresses responsibility for utility payments during the possession period
2. Security Deposit: Details any security deposit requirements and terms for return
3. Early Termination: Provisions for ending the possession period before the agreed-upon date
4. Access Rights: Defines buyer's rights to access property during possession period
1. Schedule A - Property Inspection Report: Documents property condition at time of settlement
2. Schedule B - Insurance Certificates: Copies of required insurance policies
3. Schedule C - Payment Schedule: Detailed breakdown of possession payments
4. Schedule D - Property Rules and Regulations: Any specific rules or restrictions during possession period
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