Post-Closing Occupancy Agreement (PCOA)

Also called a rent-back, a Post-Closing Occupancy Agreement (PCOA) is a contract that establishes a landlord/tenant relationship between buyer and seller after closing.

A seller may need a rent-back to allow them time to move out or to find and close on a replacement property. Offering a requested rent-back free of charge is a great way to sweeten your offer!

The PCOA outlines the amount of time that the seller will remain in the home, whether they need to carry renter’s insurance (you always want this!), if there is a security deposit and if so, in what amount, and who will pay for what utilities during the rental term.

A PCOA must be for a period of 60 days or less - otherwise, it is viewed as an invesment property and not owner-occupied, resulting in different lending terms.