Monday, January 30, 2023
Subscribe to Guide
No Result
View All Result
Hamptons.com
  • Spotlight
  • Entertainment
  • Arts
  • Community
  • Dining
  • Recreation
  • Events
    • Events Calendar
    • Post an Event
    • Gallery
    • Main Beach Music Series
  • Real Estate
    • Real Estate Features
    • Search Real Estate
      • Open Houses
      • Search Sales
      • Search Rentals
    • Title Insurance
    • Happening In The Hamptons Podcast
    • History of the Hamptons
  • Live Cameras
    • All Live Cameras
    • Sagg Main Beach, Sagaponack
    • Live Weather
    • 39A Corner, Southampton
    • Main Beach, East Hampton Village
    • South Ferry, Shelter Island
    • Coopers Beach, Southampton Village
    • Southampton Village Main Street (South)
    • Southampton Village Main Street (North)
    • Southampton Village Main Street (Hildreths)
    • Downtown Circle, Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach, Hampton Bays
    • Ponquogue Beach, Hampton Bays
    • Ponquogue Bridge, Hampton Bays
    • Shinnecock Fishing Dock, Hampton Bays
    • Village Main Street, Sag Harbor
    • Downtown Main Street, Sag Harbor
    • Windmill Beach, Sag Harbor
    • Foster Memorial Beach, Sag Harbor
    • Conscience Point Marina, Southampton
  • Public WiFi
    • Public WiFi Map
    • Public Wi-Fi Support
  • Spotlight
  • Entertainment
  • Arts
  • Community
  • Dining
  • Recreation
  • Events
    • Events Calendar
    • Post an Event
    • Gallery
    • Main Beach Music Series
  • Real Estate
    • Real Estate Features
    • Search Real Estate
      • Open Houses
      • Search Sales
      • Search Rentals
    • Title Insurance
    • Happening In The Hamptons Podcast
    • History of the Hamptons
  • Live Cameras
    • All Live Cameras
    • Sagg Main Beach, Sagaponack
    • Live Weather
    • 39A Corner, Southampton
    • Main Beach, East Hampton Village
    • South Ferry, Shelter Island
    • Coopers Beach, Southampton Village
    • Southampton Village Main Street (South)
    • Southampton Village Main Street (North)
    • Southampton Village Main Street (Hildreths)
    • Downtown Circle, Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach, Hampton Bays
    • Ponquogue Beach, Hampton Bays
    • Ponquogue Bridge, Hampton Bays
    • Shinnecock Fishing Dock, Hampton Bays
    • Village Main Street, Sag Harbor
    • Downtown Main Street, Sag Harbor
    • Windmill Beach, Sag Harbor
    • Foster Memorial Beach, Sag Harbor
    • Conscience Point Marina, Southampton
  • Public WiFi
    • Public WiFi Map
    • Public Wi-Fi Support
No Result
View All Result
Hamptons.com
August 17, 2022

Post Occupancy Agreements: What Are They and What Should We Know About Them?

John A. ViterittibyJohn A. Viteritti
in Featured, Real Estate
Home Real Estate

 

During the increase in buyer demand for properties in the Hamptons market, in addition to bidding wars, cash deals, and buyer financing after closing on the property, situations arose that placed another demand on buyers: the condition of the sale that allowed the seller to remain in occupancy beyond the transfer of title to the buyer.

 

In order to gain expertise regarding this subject, I spoke to Sandra Saiegh, a New York State attorney.

 

By way of introduction, Sandra is originally from Argentina. She has practiced law for over 30 years. She was admitted to the New York State Bar in 1995. In 1997 she moved to Manhattan to  work for the United Nations. Her expertise concentrated on areas of procurement and logistics, drafting, negotiating and managing complex commercial contracts. Over two years ago she moved full time to the North Fork and took over a local law practice, focusing on real estate transactions as well as trusts and estates. Sandra explained that her experience dealing with complex contracts with multiple parties and delicate negotiations has translated very well into working with buyers and sellers in real estate contracts.

 

JV: What are some of the reasons a seller would require a buyer to allow the seller to remain in occupancy after the transfer of title and why would the buyer agree?

 

SS: “The reasons vary. The seller may need the proceeds of the sale in order to buy a new home. Sellers may need more time to remove their possessions from the sold property, especially if they are vacating their primary residence. In these situations, a buyer would offer a post occupancy agreement as leverage to get their offer accepted.”

 

JV: Are there ever situations where a buyer may want to close and not take occupancy?

 

SS: “Yes. Especially with the increase in interest rates. Even if the buyer is paying cash, they may still want to finance the purchase, and the buyer has locked the interest rate on the mortgage loan and needs to close by a certain date. In those cases, buyers will ask sellers to sign a post-occupancy agreement in order to close before the rate lock expires.”

 

JV: With respect to these agreements, what are the conditions that the buyer would require of the seller?

 

SS: “One would be that the seller vacates on a specific date, before 30 days, in order to avoid creating a landlord-tenant relationship. If there is a lender, they would not normally agree to more than 30 days.”

 

“There is a per diem for the occupancy days that includes the buyer’s real estate taxes, mortgage interest, and insurance. The seller may continue to pay the utilities during occupancy.”

“An amount from the proceeds of the sale is escrowed with the seller’s attorney, usually around 1% of the sale price. The seller’s attorney is authorized to pay sums to the buyer if the seller does not timely vacate and deduct from this deposit for each day the seller remains in occupancy.”

 

“The buyer will be entitled to a significant sum on top of the per diem for every day that the seller remains, usually up to $1,000 a day, to motivate the seller to vacate on time.”

 

JV: What are some of the problems that might arise despite the terms of the agreement?

 

SS: “Sellers who remain in occupancy beyond the closing put an unfair risk on the buyer despite the post occupancy agreements.  One of the most critical is the creation of a landlord-tenant situation, which has been exacerbated by the governor’s Executive Orders regarding Covid and the New York State Tenant Protection Act passed in June, 2019 which would require the buyer to initiate eviction proceedings in court, consuming more time and engaging a land-lord tenant attorney to litigate.”

 

“Another problem is that of insurance. Since the seller no longer owns the property the buyer may have to purchase a commercial insurance policy.”

 

JV: What about a situation whereby the seller doesn’t vacate, and the buyer must vacate his existing home as required by contract with his buyer?

 

SS: “That would create a headache for the buyer who may have to find a place to stay and may incur important additional costs. Attorneys do not like post closing agreements for all of the reasons we have discussed. My advice is if any of the parties does not feel comfortable with the seller staying beyond the closing date or they can’t agree on the terms of the post closing agreements, they should agree to postpone the closing date.”

Previous Post

Meet Author Margreit Maitland at Red Jacket Books

Next Post

Sag Harbor Cinema to Host Sneak Preview of ‘Billy Joel: Live at Yankee Stadium’

Search Articles

No Result
View All Result

FOLLOW US

TRENDING ARTICLES

The Goldbergs Empire Grows

The Goldbergs Empire Grows

January 30, 2023
Sixty-Something: Less Then Fifty Days Until Spring

Sixty-Something: Less Then Fifty Days Until Spring

January 30, 2023
The Sea Like You’ve Never Seen with South Fork Salt

The Sea Like You’ve Never Seen with South Fork Salt

January 25, 2023
Next Post
Sag Harbor Cinema to Host Sneak Preview of ‘Billy Joel: Live at Yankee Stadium’

Sag Harbor Cinema to Host Sneak Preview of 'Billy Joel: Live at Yankee Stadium'

  • Sixty-Something: The Dance of the Eternal Souls

The east end has multiple charms that dazzle those who pause to notice. If you are disposed to spend time at beaches or boating, you understand the variety of powerful sunrises and sunsets. I call these skies the dance of the eternal souls.

I swear at the zenith of sunrises and sunsets, I feel the presence of every soul that ever existed or ever will. The east-end sky is so big and full of naturally evolving clouds, colors, and angles that it exemplifies spiritual power. There has to be a higher hand at play. One cannot create such an endless changing canvass without forces that no mortal can truly harness or even explain.

Read the full article at Hamptons.com (Link in Bio)
.
.
.
.
.
#community #eastend #longisland #hamptons
  • 5 Places To Workout in The Hamptons

We live in a beautiful place that makes it easy to stay fit and healthy with various workout options. Whether you’re looking for a yoga, a spin, or a personal training session, the Hamptons has something for everyone. Here are five places to pay for a workout class in the Hamptons:

Read the full article at Hamptons.com (Link in Bio)
.
.
.
#hamptons #workout #gym #fitness #recreation #thehamptons
  • Family Dance Group with A&G Dance Company

As a dad in the Hamptons, I’m always looking for activities to do with my kid. Having activities I know I can trust for good father-daughter time is crucial; I call them “Hamptons Dad Resources.” Recently, I’ve been loving my Saturday morning family dance class at Southampton Cultural Center with the A&G Dance Company. @agdancecompany 

Read the full article at Hamptons.com (Link in Bio)
.
.
.
#dance #kids #hamptons #southampton #southamptoncultrualcenter #familydance
  • Our Fabulous Variety Show Presents a Staged Reading of Steel Magnolias

Our Fabulous Variety Show (OFVS) is excited to announce the next performance in their new theatre opportunity – The Staged Series – a creative venture that provides adult actors opportunities to pitch and participate in shows for readings. The Staged Series will kick off 2023 with a staged reading of Steel Magnolias by Robert Harling. The reading will be at LTV Studios in Wainscott on Saturday, January 28th at 6pm. Attendance is a free will donation, suggested donation of $20 but all are welcome and greatly appreciated.  @ofvs_2010

Read the full article at Hamptons.com (Link in Bio)
.
.
.
#hamptons #ofvs #steelmagnolias #theater #entertainment
  • Open Mic & Silent Disco Party at The Clubhouse

Great news! On Saturday, January 28th between 6PM and 11PM The Clubhouse will be hosting an “Open Mic Night and Silent Disco Dance Party.”

This is an excellent opportunity to showcase your talent, whether it be singing, joke-telling stand-up, or a small comedy skit. Perhaps read an original poem or recite a classic. Whatever you choose, this night is an excellent opportunity to strut your stuff in front of a live audience in a prime venue. While you are waiting to perform or viewing this extravaganza, the Clubhouse bar and kitchen will be available to sample their beverages and wonderful menus of tasty affordable treats. @clubhousehamptons  @guild_hall

Read the full article at Hamptons.com (Link in Bio)
.
.
.
#theclubhousehamptons #easthampton #disco #discoparty #openmic
  • Did You Know That Seagulls Love Spaghetti?

I have no idea who was the first person to think of bringing a bowl of spaghetti to the beach to share with a seagull but my money’s on Jackson Pollack who happened to love spaghetti after having it for the first time at 18.

 Read the full article at Hamptons.com (Link in Bio)
.
.
.
#seagulls #beach #spaghetti #hamptons #jacksonpollack #community
Facebook Twitter Instagram Youtube
Hamptons.com

Saunders Broadcasting Corp.

Phone: 631-405-3902
Email: [email protected]
Facebook: Facebook.com/HamptonsOnline
Twitter: @Hamptons
Instagram: @HamptonsOnline

Contact Us

Hamptons.com

  • Arts
  • Community
  • Dining
  • Entertainment
  • Featured
  • Gallery
  • History of the Hamptons
  • Kids
  • Music Videos
  • Real Estate
  • Recreation
  • Spotlight
  • Tuesdays at Main Beach Music Series

Subscribe

Get daily news updates to your inbox!

Subscribe to our mailing list to receives daily updates!

© 2021 Hamptons.com | All rights reserved
Saunders Broadcasting Corp.
Terms & Conditions | Privacy Policy | Contact Us

No Result
View All Result
  • Spotlight
  • Entertainment
  • Arts
  • Community
  • Dining
  • Recreation
  • Events
    • Events Calendar
    • Post an Event
    • Gallery
    • Main Beach Music Series
  • Real Estate
    • Real Estate Features
    • Search Real Estate
      • Open Houses
      • Search Sales
      • Search Rentals
    • Title Insurance
    • Happening In The Hamptons Podcast
    • History of the Hamptons
  • Live Cameras
    • All Live Cameras
    • Sagg Main Beach, Sagaponack
    • Live Weather
    • 39A Corner, Southampton
    • Main Beach, East Hampton Village
    • South Ferry, Shelter Island
    • Coopers Beach, Southampton Village
    • Southampton Village Main Street (South)
    • Southampton Village Main Street (North)
    • Southampton Village Main Street (Hildreths)
    • Downtown Circle, Montauk
    • Long Island Aquarium | Shark Tank
    • Long Island Aquarium | Coral Reef
    • Tiana Beach, Hampton Bays
    • Ponquogue Beach, Hampton Bays
    • Ponquogue Bridge, Hampton Bays
    • Shinnecock Fishing Dock, Hampton Bays
    • Village Main Street, Sag Harbor
    • Downtown Main Street, Sag Harbor
    • Windmill Beach, Sag Harbor
    • Foster Memorial Beach, Sag Harbor
    • Conscience Point Marina, Southampton
  • Public WiFi
    • Public WiFi Map
    • Public Wi-Fi Support

© 2021 Hamptons.com | All rights reserved
Saunders Broadcasting Corp.
Terms & Conditions | Privacy Policy | Contact Us