What Is a Use and Occupancy Agreement in NH Real Estate?

🏡 What Is a Use and Occupancy Agreement in NH Real Estate?

In towns like Plymouth, Campton, Thornton, Rumney, and throughout Central NH, buyers and sellers often hit timing issues during a home sale.

When one side needs temporary access to the property before or after closing, a use and occupancy agreement (sometimes called a U&O) can solve the problem while protecting both parties.

Here’s how U&O agreements work in New Hampshire.

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What Is a Use and Occupancy Agreement?

A use and occupancy agreement is a short-term contract that allows either:

• The seller to stay in the home after closing, or

• The buyer to move into the home before closing

It is not the same as a lease.

It is a temporary arrangement outlining rights, responsibilities, and liability.

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When Sellers Use U&O Agreements

A seller may request a U&O agreement when:

✔ Their next home isn’t ready

✔ They need extra time to move out

✔ They’re waiting for movers or contractors

✔ Closing timelines didn’t align

This is similar to a rent-back but more focused on occupancy than rent.

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When Buyers Use U&O Agreements

A buyer may request a U&O agreement when:

✔ They need to move in early

✔ They sold their previous home faster than expected

✔ Their lease ends before closing

✔ They want access for storage, contractors, or cleaning

The agreement allows early access without the sale being fully finalized.

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What Should Be Included in a NH U&O Agreement?

A strong use and occupancy agreement should cover:

• Length of occupancy

• Daily or flat-rate fee (if applicable)

• Utilities responsibility

• Insurance requirements

• Condition expectations

• Security deposit details

• Damage liability

• Access rules

• Restrictions on renovations or alterations

The goal is to eliminate misunderstandings.

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Is a U&O Agreement the Same as a Lease?

No — a U&O agreement does not create a landlord-tenant relationship.

It is a temporary, limited arrangement tied to a real estate transaction.

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Who Is Responsible for Damage or Repairs?

Typically:

• The occupant (buyer or seller) is responsible for any damage they cause

• The property owner must maintain structural elements

• Insurance policies may require temporary endorsements

Your agent and attorney will clarify responsibilities in writing.

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Why U&O Agreements Are Helpful in NH

These agreements help both parties by:

✔ Preventing failed closings due to timing issues

✔ Allowing flexibility on move-in/move-out logistics

✔ Providing a legal framework for temporary access

✔ Maintaining clear expectations and protections

In tight markets or complex closings, U&Os can keep deals alive.

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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

W: www.JimJohnsonRealEstateAgent.com

Licensed New Hampshire REALTOR® with Three Hills Real Estate Services

Broker Email: info@ThreeHillsRES.com

Broker Website: www.ThreeHillsRES.com