What Is a Rent-Back Agreement and How Does It Work in New Hampshire?
- Jim Johnson
- 6 days ago
- 2 min read
🏡 What Is a Rent-Back Agreement and How Does It Work in New Hampshire?
In competitive markets like Plymouth, Campton, Rumney, Thornton, and across Central NH, sellers sometimes need extra time to move out after closing.
A rent-back agreement allows the seller to stay in the home temporarily — even after the buyer becomes the legal owner.
Here’s how rent-backs work in NH and what both sides should know.
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What Is a Rent-Back Agreement?
A rent-back, also called “post-closing occupancy,” is when the buyer lets the seller remain in the home for a set number of days after closing in exchange for a daily rent amount.
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Why Sellers Use Rent-Backs
Common reasons include:
Waiting for their next home to close
Needing more time to relocate
Delays with movers or contractors
Buying out-of-state and needing flexibility
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How Long Can a Rent-Back Last?
Most NH rent-backs last 1–60 days, depending on the buyer’s lender.
Certain loan types — like FHA or VA — limit how long the seller can remain without affecting occupancy rules.
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How Rent Amount Is Calculated
Rent is usually based on:
The buyer’s daily mortgage cost
Taxes
Homeowners insurance
Utilities arrangements
Some sellers also include a refundable security deposit.
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Who Is Responsible for Damage or Repairs?
During a rent-back, the seller-occupant is typically responsible for:
Any damage caused while they remain in the home
Utilities (unless negotiated otherwise)
The buyer’s homeowner’s insurance may require a temporary endorsement for post-closing occupancy.
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What Should Be Included in a NH Rent-Back?
A strong rent-back agreement should clearly outline:
Length of occupancy
Daily rent amount
Security deposit
Move-out expectations
Condition requirements
Insurance responsibilities
Access for appraisal re-inspects (if needed)
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Why Buyers Should Be Cautious
Buyers should understand:
You are the legal owner, but cannot occupy the home yet
Damage can occur while the seller stays
Insurance must be set up properly
Overly long rent-backs may violate loan terms
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Keywords
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Jim Johnson — Real Estate Agent
58 NH Route 25A
Wentworth, NH 03282
P: (857) 249-7392
Licensed New Hampshire REALTOR® with Three Hills Real Estate Services
Broker Email: info@ThreeHillsRES.com
Broker Website: www.ThreeHillsRES.com
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