Frequently Asked Questions

Legal Hotline FAQ

a blog of the most frequently asked questions to the MAR legal hotline.


Cindy Sellers
Cindy Sellers
Cindy Sellers's Blog

A buyer is purchasing property from an unrepresented FSBO seller who is either in default or in foreclosure and the seller needs to do a lease-back for a couple of days.

PHiFA imposes several requirements on purchasers of property in default or foreclosure where the parties, at the outset, plan on leasing the property back to the original homeowner.PHiFA is silent on the kinds of lease-back scenarios REALTORS® typically encounter where the seller needs a few more days in the property before he can move into the next home (typically accomplished through a post-settlement occupancy agreement).
Nevertheless, if the seller anticipates, at the time that the contract of sale is signed, that he will need to lease back the premises for a few days after settlement and the tenancy agreement is included as part of the contract of sale, then the buyer must provide the seller with a separate piece of paper that is attached to the contract of sale, signed and dated by both the seller and buyer and witnessed and acknowledged by a notary public called “Statement About Tenancy” immediately upon execution of the contract of sale. §7-313 The language for the “Statement About Tenancy,” which must be in at least 15-point type, can be found in §7-313(D)(iv) and is incorporated into a form of the same name published by MAR.
 


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