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The Ultimate Rent Back Agreement Template

Jerry Norton

Aug 15, 2024

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Because every real estate investment deal is different, you may run across new things with every new deal. That's the best way to describe my real estate journey!

And that may include a rent back agreement.

In this article, I'll break down what you need to know about a rent back agreement, including a rent back agreement template to help you understand what needs to be outlined in the contract.

Let's get started!

What is a Rent Back Agreement? 

A rent back agreement, also known as a leaseback agreement, is a legally binding contract between a home buyer (such as an investor) and seller that allows the seller to continue occupying the property for a specified period of time after the sale is completed. 

During this time, the seller becomes the tenant, paying rent to the new owner.

The duration of a rent back agreement can vary, but it typically ranges from a few days to a few months. It all depend upon the particular situation.

This is a unique situation, no doubt: it provides the seller with flexibility, giving them time to find a new home or complete any necessary moving arrangements without the immediate pressure of vacating the property, and provides you as the buyer and investor pay in the form of rent.

Components of a Rent Back Agreement

If you plan on using a rent back agreement, what elements does it need to include?

  1. Rent Amount and Payment Schedule: Clearly state the amount of rent and when it is due.
  2. Duration: Specify the length of the rent back period.
  3. Security Deposit: Determine if a security deposit is required to protect the buyer against potential damages.
  4. Insurance: Make provisions for insurance coverage during the rent back period.
  5. Repairs and Maintenance: Define the responsibilities for repairs and maintenance during the rent back period.

Seller Rent Back Agreement Template

Now that we've broken down what a rent back agreement is along with it's components, let's take a look at a template.

But first, a disclaimer!
This contract template is for informational purposes only. By accepting this material, you recognize that the publisher is not engaged in offering or providing legal, accounting or other professional services. The advice and strategies contained herein may not be suitable for your situation. You should feel free to and are advised to consult legal, accounting or other professional advisors. Neither the publisher nor author shall be liable for any loss of profit or any other commercial damages, including but not limited to special, incidental, consequential or other damages.


SELLER RENT BACK AGREEMENT WHEREAS, ____________________________________________(“BUYER”) and _____________________________________________ (“SELLER”) have entered into a contract for the purchase and sale of property at ___________________________________ (the “PROPERTY”), which contract is dated ____________________, 20_______;

and WHEREAS, SELLER desires to occupy the Property after closing and disbursement, and BUYER is willing to allow SELLER to occupancy in accordance with and subject to the terms and conditions herein set forth:

1. SELLER shall occupy the PROPERTY and agrees to pay BUYER rent of ($_____________) per day from ________________, 20____ until _________________, 20___) (_______ days).

Rent to be payable in advance at the time of Closing and delivery of deed.

2. Should SELLER vacate earlier, the unearned rent shall be refunded to SELLER.

3. Should SELLER NOT surrender possession of the PROPERTY to BUYER as specified in this agreement, SELLER shall be subject to eviction and shall be additionally liable to BUYER for payment of $____________ per day until possession is delivered to BUYER.

4. SELLER agrees that a security deposit in the amount of $______________ will be held by Closing Company from SELLER’s closing proceeds until 10 days after SELLER vacates the PROPERTY.

5. SELLER shall be responsible for payment of all utilities and for insurance on contents until the date SELLER vacates the PROPERTY.

The BUYER agrees to maintain liability insurance on the Premises. SELLER agrees to indemnify and hold harmless BUYER and any lender holding a Deed of Trust on the PROPERTY as collateral from any claims or actions which arise as a result of the SELLER’S occupancy.

6. SELLER agrees to reimburse BUYER for any and all damage or destruction to the PROPERTY caused by SELLER, within 5 days of BUYER notifying SELLER of said damage and/or destruction.

7. SELLER agrees to reimburse BUYER for any and all costs of collection of the terms herein, including but not limited to reasonable attorney’s fees, court costs, collection costs, and travel expenses.

DATED this ______________ day of __________________, 20______. SELLER(S): _____________________________ _____________________________ BUYER(S): ______________________________ _____________________________ 

The Bottom Line: Seller Rent Back Agreement

There you have it: in the situation where a seller needs more time to leave their property, a seller rent back agreement may be a short term solution. If you choose to use this strategy, ensure you have a sound rent back agreement to protect you and your investment property.