What is a rent back?

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What is a rent back?

In the process of transitioning from selling their current property to purchasing a new one, homeowners often confront a significant challenge. The financial dynamics may require certain sellers to sell their existing property in order to generate the necessary funds for a down payment on their prospective home. Fortunately, a practical remedy exists that alleviates the complexities of finding temporary housing during the intermediate phase – typically the period between property sale and the completion of the new purchase. This remedy comes in the form of a "rent back" arrangement or post-settlement occupancy agreement, as stipulated in contracts.

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