A leaseback, also known as a sale-leaseback, allows a seller to remain in their home after closing by renting it from the buyer for an agreed period. It is a convenient option when you need more time to move or are waiting for your next property to close.
Here’s how it works: once your home sells, ownership transfers to the buyer on the closing date. Instead of moving out immediately, you stay as a tenant and pay rent for a short, defined period. The terms — such as rent amount, duration, and maintenance responsibilities — are negotiated before closing and written into the purchase agreement.
Leasebacks are common in competitive markets or when a seller’s purchase and sale dates do not align perfectly. They give sellers flexibility while providing buyers with guaranteed rental income for the interim period.
However, both sides must protect themselves. The agreement should clearly state rent amount, payment schedule, and insurance obligations. Sellers are expected to maintain the home in good condition and vacate by the agreed date.
Handled correctly, a leaseback can create a win-win situation that offers sellers breathing room without the stress of temporary housing.
Need more time between your sale and next move?
Let’s discuss whether a leaseback could work for your situation and structure terms that protect you.