The most exciting part of buying a new house is moving into it and launching a new phase of life — but sometimes, the seller wants to stay after closing for one reason or another. And if the buyer and the seller agree, then sellers can typically stay in a house up to 60 days after closing.[1]
In some cases, the seller’s extra time is written right into the purchase contract from the start. Other times, a separate document called a temporary occupancy or use and occupancy (U&O) agreement is used.[2] A U&O is more detailed and is not always required.
If you're thinking about letting the seller stay after closing, there's one key thing to determine before you sign any documents: How long can they stay, and what’s a fair, legal seller move-out timeline? This guide walks you through your options and how to protect your new home.
Can the seller stay in the house after closing?
Yes — but only if it’s agreed to in writing.
Once closing is complete, the buyer officially owns the home. Unless the purchase agreement or a separate document says otherwise, the seller is expected to move out by closing day. But if the seller needs extra time and the buyer agrees, the terms must be clearly written down before closing.
This can be handled in the purchase agreement or in an amendment stating that the seller will have extra time (for example, 10 days) to move out after closing. Typically, not many details are included in this method — just a time frame. This is a more common practice in some states than others, and in easy, uncomplicated transactions where trust between buyer and seller has been established.
Other times — especially in states that require it, extremely hot markets, or just as an added protection — buyers and sellers use a document called a temporary occupancy or use and occupancy (U&O) agreement. This adds more detail around fees, liability, and the move-out deadline.
What about a handshake or casual promise? Not worth the risk. If it’s not written down, it can be hard to enforce, and the buyer may end up with a seller who refuses to leave on time.
“It is not uncommon to see both residential and commercial sellers ask for more time, in which case a leaseback agreement can make sense for all parties,” says Steven M. Katz, a real estate attorney at Katz DiCuccio LLP in Ohio.
What is a temporary occupancy agreement?
A temporary occupancy agreement — sometimes called a use and occupancy (U&O) agreement — is a short-term written agreement that lets the seller stay in the home for a few days or weeks after closing. Not every state or transaction uses this kind of agreement: Some buyers and sellers simply write the move-out terms directly into the purchase contract.
But when it is used, it’s most often in situations like:
- States where real estate boards or brokers require it
- Hot markets, where fast closings are common, but sellers still need time to pack and move out
- Contentious transactions where both parties want legal clarity
- Sales involving multiple properties, where the seller’s move depends on another closing
- Last-minute surprises, like a moving truck cancellation or a delayed home purchase
Even if it’s not required, a U&O agreement helps protect both sides when the seller is staying after closing and gives buyers peace of mind that they’ll get their home back on time.
What goes into a U&O agreement? Typically, the agreement will cover seller’s responsibilities, such as:
- How long the seller can stay (a specific move-out date)
- How much rent they’ll pay (if the buyer requires it, such as per-day or flat fee)
- Who covers utilities and property upkeep
- Who is responsible for any damage or accidents
- What happens if the seller doesn’t leave on time
For example, let’s say a seller’s new home falls through a week before closing. The buyer agrees to let them stay for five extra days, paying $50 per day. These terms go into a U&O agreement and are signed before closing.
A note on charging sellers a daily fee to stay past closing
Charging sellers rent or a fee to stay past closing isn’t common in every market — for example, in several midwestern states, including where I am licensed in Indiana, “Midwestern hospitality” tends to apply even in real estate matters. Almost every buyer I’ve worked with has been happy to give the seller extra time to move out, free of charge.
That said, charging that daily fee can be very smart, and I’ll never advise against it. It gives the seller an incentive to leave on time and helps protect the buyer financially. It’s also a common practice in many real estate markets around the country.
How long does the seller have to move out after closing?
By default, the seller must move out by closing day unless otherwise specified in the purchase agreement. If it’s not specified, then the buyer has the right to move in immediately after closing.
However, buyers and sellers can agree to a different seller move-out timeline as long as it’s written into the contract or a U&O agreement. Common examples include:
- A short 1–3 day grace period to finish moving
- An extended stay of 7–14 days, usually with daily rent or escrow
- In new-construction situations, sometimes the buyer gives the seller (basically a homebuilder) even more time to retain possession of the property to finish the build.
What’s normal varies by location. In some states and markets, post-closing possession is common, and sellers expect to be given a little extra time to move out. In others, it’s rare to ever see a seller stay beyond closing.
“There is no one-size-fits-all answer — but most lenders (especially FHA and conventional) require that the buyer take occupancy as their primary residence within 60 days, so that becomes the upper limit in most cases,” explains Gary Lanham, a broker associate with Coldwell Banker Real Estate in Fort Lauderdale, Florida.
“In my experience, 3 to 10 days post-closing is typical,” he adds. “It gives sellers a little breathing room to move out and coordinate their next steps without delaying the closing itself.”
Your agent or attorney can help you understand what’s typical in your area and make sure the agreement fits your situation.
What if the seller doesn’t leave on time?
If the seller doesn’t leave on time, buyers have several options for how to address the situation.
Holdover seller
If the seller stays past the agreed move-out date, they’re now a holdover occupant — someone living in the home without permission. Even though the buyer owns the house, getting the former owners out can become complicated.
Legal remedies
What happens next depends on what’s in the written agreement, whether that’s the purchase agreement or a separate U&O agreement. The buyer might:
- Enforce daily penalties or rent
- Withhold money held in escrow
- Take the seller to small claims court
- In extreme cases, begin eviction proceedings
“If the seller decides that they don't want to vacate the home after the rent-back term has expired, notes Ledeana Strand, a real estate agent at Homes by Strand, “they can claim ‘squatter rights,’ and it can take months for a buyer to then have to go through the legal hoops of the eviction process, which can also be costly with legal fees.”
In these cases, buyers also need to notify their insurance companies that their home is not owner-occupied and is being rented, to help protect their investment.
Eviction can take weeks, or even months, and may delay the buyer from moving in or making repairs. That’s why it’s so important to have everything in writing before closing, and to include real consequences if the seller overstays.
Can closing be delayed to give the seller more time?
Yes — but only if both parties agree and sign a contract amendment. The closing date is part of the purchase agreement, so changing it requires mutual consent in writing.
Delaying closing can be a simple way to give the seller more time, especially if the need is known early. But buyers should weigh the pros and cons before agreeing.
Delaying closing
Rather than allowing the seller to stay beyond closing, you can simply agree to postpone the closing date.
✅ Pro: Simplifies everything; no need for added paperwork and negotiations
✅ Pro: Prevents the buyer from taking on liability while the seller is still living there
❌ Con: Pushing back the closing date means rearranging everyone’s timeline — for everything
❌ Con: May require lender approval and risk changes to mortgage terms
Post-closing occupancy
Alternatively, if closing on time is of the essence, the buyer can agree to let the seller stay in the home a little longer, even though the seller no longer legally owns the property.
✅ Pro: Allows the buyer to close on time, protecting mortgage terms
✅ Pro: Protects buyer with clear, explicit, written and signed-off terms
❌ Con: Requires additional negotiations and paperwork
❌ Con: Risk is unavoidable — even with a signed agreement, things can still go south
In either case, clear terms in writing are essential.
Tips for buyers: How to protect yourself
Letting a seller stay in the home after closing can work out just fine as long as you take the right steps to protect yourself. Even if you trust the seller or the situation feels low-risk, it’s still your home once the deal closes.
That means you’re responsible for the property, even if you’re not living in it yet. Most mortgage lenders require buyers who are purchasing a home as a primary residence to occupy the home 60 days after closing (or earlier).[3] To avoid headaches, delays, or financial loss, make sure expectations are clearly spelled out in writing before closing day.
Here are a few ways to stay protected during any post-closing possession arrangement.
Work with an experienced real estate agent or attorney
Your agent or attorney can help you understand what’s normal in your area, write up proper agreements, and spot red flags before they become problems. If the seller needs to stay after closing, you’ll want professional help to make sure your rights and your home are protected.
Require daily rent or hold money in escrow
Charging daily rent gives the seller an incentive to leave on time. Some buyers also hold a portion of the seller’s proceeds in escrow until the home is vacant and in agreed-upon condition. Both options provide leverage if something goes wrong.
Get everything in writing
Verbal promises won’t protect you if the seller refuses to leave or damages the home. Be sure the move-out timeline, rent, penalties, and responsibilities are all included in the purchase contract or a separate use and occupancy agreement.
The bottom line
If a seller needs to stay in the home after closing, it’s important to have a clear plan. A use and occupancy agreement or a detailed clause in the contract can give both sides peace of mind and help avoid last-minute issues.
Buyers should always consult a trusted real estate agent or attorney to make sure they’re fully protected.
Want an expert on your side? Clever can connect you with a top-rated local agent who knows how to handle negotiations, protect your interests, and make your home purchase as smooth as possible.