What exactly is a “rent-back”?
Northern Virginia agents use the Seller’s Post-Settlement Occupancy Agreement published by the Northern Virginia Association of REALTORS® (NVAR).
The form makes it clear that the occupancy charge “is not rent and this agreement is not a lease. It’s a temporary right to use the property that isn’t governed by the Virginia Residential Landlord-Tenant Act (VRLTA).”
In plain English: title transfers to you on closing day, but the seller becomes your short-term guest for a maximum of 60 days. Anything longer turns into a normal landlord-tenant relationship that requires a different lease.
Why 60 days is the magic number
Loan requirements Most lenders that sell to Fannie Mae classify your purchase as “owner-occupied” only if you intend to move in within 60 days. Go past that and you could be pushed into higher-rate “investment” financing.
Industry practice Regional title companies and lenders—Federal Title is a good example—expect the rent-back window to stay inside that two-month envelope.
Market norms National guides echo the same range: 30–60 days is typical, 90 days is the ceiling most lenders will tolerate.
How much should you charge?
The NVAR form lets you choose:
| Option | How it’s calculated |
|---|---|
| Flat daily rate | One figure that never changes (e.g., $250 per day in our sample contract). |
| Flat lump sum | A single dollar amount paid up front. |
| PITI formula | Total of your first annual mortgage payments (principal, interest, taxes, insurance + HOA/condo dues) ÷ 365 × number of occupancy days. |
Whichever method you pick, the agreement says the money is an “occupancy charge,” not rent—important language that keeps VRLTA rules out of the picture.
Other key terms to nail down
| Term | Why it matters |
|---|---|
| Security deposit | Held by the settlement company. A common amount is one month of the occupancy charge. Any damage or hold-over fees come out of this pot. |
| Deadline & penalties | Seller must hand over keys by 9 p.m. on the Occupancy Deadline. Miss it and the charge automatically doubles (or whatever figure you insert). |
| Utilities & HOA/condo fees | Seller keeps them in their name and pays them until they move. |
| Access | Buyer gets “reasonable access” plus one full set of keys at closing; a second walk-through happens right after the seller vacates. |
| Insurance | Buyer carries homeowners coverage from settlement forward; seller maintains a policy on personal belongings and liability. |
