The Colorado Real Estate Commission made significant changes to the approved form for “Post Closing Occupancy Agreement.” These changes should reduce disputes as well as the need for lengthy additional provisions. Here are the major changes:
60 Day Term. The new form extends the occupancy term from 30 days to 60 days. This will provide brokers with a lot more flexibility in using the form to meet client needs.
Term Adjustment. The new form allows the seller to terminate the occupancy early, with 5 days notice. This flexibility will help in circumstances where the seller is attempting to relocate but does not know the exact date s/he will vacate.
Access to Property. The old form allowed the buyer access to the property upon “reasonable” notice to the seller. The wording in lease agreements has proved to be a point of contention as one person’s “reasonableness” is rarely identical to the others. The new form changes the notice to a hard and fast “24 hours.”
Security Deposit. The prior form failed to adequately detail concerning the sercurity deposit, including what it could be used to pay, and when it was required to be returned. The new form explains that the security deposit can be held for repair or replacement of damaged items (beyond ordinary wear and tear) and it requires the buyer to return the deposit balance no later than 30 days after termination.
Permitted Use. The revised agreement now specifies that the seller’s may only use the property as seller’s personal residence, and that the seller will comply with state and federal laws governing HOA rules and regulations.