Dear Heather,I am selling a home and the property I am going to move into won’t be available until two weeks after the transaction closes. Can I rent my existing home back from the new owner? Should I pay rent? What happens if something gets damaged? How is this usually handled?Home SellerDear Home Seller,There are several reasons why a seller may need to rent back their property from the new owner for a couple of weeks or so. The home the seller is buying or moving into might not be available at the time the transaction closes or they may need the proceeds of the sale of their house in order to settle on their new accommodation.The homebuyer might find this situation unsettling. After all, they’ve paid a lot of money for their new home and on top of that will likely be paying interest on a loan for a home that they can’t yet occupy. A buyer will probably be eager to move in right away, and may not have anticipated finding themselves in the position of being a landlord, albeit for a short space of time.This scenario should be treated professionally, as you would any other business relationship. Buyers should never let sellers retain possession of a home without executing a formal occupancy agreement. These agreements spell out the terms and conditions of the seller’s occupancy and protects buyers as well as the sellers.Usually, seller rent backs are less than 30 days and the agreement should contain:• term of the rental period • amount of rent per day• amount of security deposit• whether the security deposit will be held in escrow or released to the buyer at closing• late charges, if any, pertaining to non-sufficient funds and /or payments that are received late outside of escrow• who pays for which utilities• right of buyer to enter property• seller’s duties to maintain the property• lease assignment and subletting rights• seller’s obligations upon surrender• insurance for seller’s personal belongings• miscellaneous conditionsIn either case, the seller should carry coverage for the seller’s personal belongings and automobiles. It is a good idea if the rent-back agreement is drawn up by the buyer’s attorney.Determining rental amounts for seller rent backsThe rent the seller pays is negotiable. Sometimes sellers don’t want to pay any rent but ask to stay in the home for a few days rent-free. In that event, it is still wise to execute an agreement that addresses liability issues and term.Because most buyers finance a new home, buyers are incurring interest and paying taxes and insurance for a home they do not occupy. It is reasonable, in most cases, to charge the seller an amount that is equal to a daily, prorated amount of their expenses including property insurance, and it is a good idea if it is collected up front or in advance. Usually sellers do not have hidden agendas, but just need some time to get organised. It is very rare to have any repercussions, but highly advisable to have an agreement in place just in case anything goes wrong. • Heather Chilvers is among Coldwell Banker Bermuda Realty’s leading sales representatives. She has been working in real estate for 25 years. If you have a question for Heather, please contact her at hchilvers@brcl.bm or 332-1793. All questions will be treated in confidence. Read this article on Facebook: Ask Heather Real Estate