Although the agreement has qualities similar to those of a lease, the two are not the same. Those who live in the house are not considered tenants, which means that they do not have tenant rights. On the contrary, the agreement does not allow them to use and occupy the property. Enter the use and occupancy agreement. Often referred to as « U-O, » it is a fairly common agreement between a buyer and a seller, where one of them is allowed to occupy the property for a certain period of time. In some cases, the buyer is the one who asks for the OPU so that he can move into the house, while he is still waiting for a mortgage to be concluded and before the property is legally transferred. In this case, while you are directing the agreement, the more specific you can be, the better. They want to ensure that the duration of the agreement is clear, as well as explicit conditions as to what should happen when it expires. Also, if you have certain guidelines that you want to follow by buyers, such as .
B do not invite craftsmen during this period or make any major changes to the property, make sure they are specified in the agreement. According to David Reischer, a real estate lawyer and CEO of LegalAdvice.com, an OU also facilitates the evacuation and removal of a person from a property if something goes wrong with respect to a rental agreement. « A U-O should always indicate that the contract creates a simple license to occupy the premises and is not a rental agreement, » he explains. Use and occupancy agreements are generally composed of two main concepts: the agreement can be fully available in written or oral form. The agreement may also exist in partial written form and partly oral. If the agreement is oral, the nature of the agreement and the conditions should be defined and decided during the interview. However, it is useful to prepare the occupancy agreement in writing. According to the rule, if the agreement lasts more than six weeks, then it is necessary for the inmates to put the occupancy agreement in writing. Think of it as rent or a hotel bill.
As a seller, it is up to you to choose how you want to be properly compensated for the use of your property.