When you`re looking to purchase a property, you may come across the phrase “possession under agreement of sale.” This term refers to the transfer of possession of a property from the seller to the buyer before the sale is completed.
In simpler terms, “possession under agreement of sale” means that the buyer is allowed to move into the property before the sale is fully closed. This can be a desirable option for both parties, as it allows the buyer to begin making the property their own and the seller to receive some income while waiting for the sale to be finalized.
However, it`s important to note that possession under agreement of sale is not the same as full ownership. The seller remains the legal owner of the property until the sale is completed and all necessary paperwork is signed.
It`s also important to establish clear terms for possession under agreement of sale to avoid any misunderstandings or legal issues. This should include the length of time the buyer can stay in the property, any rental payments or security deposits required, and any rules or expectations for upkeep and maintenance.
In addition, possession under agreement of sale should be clearly stated in the purchase agreement and any other related contracts. This ensures that both parties have a clear understanding of the arrangement and any potential consequences if the terms are not followed.
Overall, possession under agreement of sale can be a useful option for buyers and sellers alike. However, it`s important to approach this arrangement with caution and ensure clear communication and documentation to protect everyone involved.