Esprit-Realty

  Sellers have a right to be proactive about knowing how buyers financing is progressing. There are terms spelled out in the purchase and sale agreement regarding sellers right to terminate the contract if buyers are not following through with their promise to get financing. This helps sellers know when to terminate the contract early rather than waiting until closing date comes and goes with a buyer who is unable to close.

Rent-back agreements are more common in buyer competitive markets, as buyers will consider options that make their offer standout to be more attractive to sellers. However, there are liability risks that a lot of buyers are not aware of when they sign a rentback agreement. It is important to be informed!