The following are instructions for the preparation and use of Form 271, the Interim Occupancy Agreement.
Analyzing the interim occupancy agreement
first tuesday Form 271, Interim Occupancy Agreement is used to establish a landlord-tenant relationship between the seller and the buyer when the seller agrees to give the buyer possession to the property being sold at any time prior to the close of escrow. The conditions which cause the seller to agree to the premature transfer of possession typically find the property vacant, the seller eager to accommodate a prospective buyer who wants to occupy the property immediately and a weak real estate market producing few buyers, fewer lenders and levels for qualification, and thus fewer sales.
The purpose for the use of the Interim Occupancy Agreement by a seller is to establish grounds for eviction under landlord-tenant law should the buyer take possession and fail for any reason to timely close escrow. A buyer with possession under an arrangement to purchase the property, not a separate rental agreement, is not subject to landlord-tenant law.
Preparing the interim occupancy agreement
The following instructions are for the preparation and use of Form 271, the Interim Occupancy Agreement. Form 271 is designed for the listing broker to prepare to formalize negotiations between the seller and the buyer to transfer possession prior to the close of escrow. The function of the occupancy agreement is to establish the legal relationship of the buyer with the seller relating solely to the occupancy prior to closing as a landlord-tenant arrangement, not a mere buyer who has been given possession under the purchase agreement or escrow instructions. The remedies for the seller on a failure of the sales escrow are dramatically different under the two arrangements, the occupancy agreement in this regard, favoring the seller. Without it, the buyer’s occupancy is as a buyer and runs the duration of any dispute.
Editor’s note — The instructions correspond to the provision in the form bearing the same number.
Date: Enter the date and name of the city where the interim occupancy agreement was prepared. This date is used when referencing this document.
Buyer/Tenant signature: Enter the date the buyer signs. Enter the address, phone and fax numbers and email address of the buyer. Obtain the buyer’s signature.