In an occupancy provision after closing, what is this arrangement commonly called?

• A. Rent-back provision
• B. Lease-back agreement
• C. Post-closing occupancy
• D. Temporary tenancy

Answer: (A)

The concept being tested is post-closing occupancy where the seller stays in the home after the closing and pays rent. This arrangement is commonly described as a rent-back provision. It lets the seller remain on the property for a defined period while they finish moving or coordinate timing, with the buyer acting as landlord and the seller as tenant.

Key details that help you understand why this term fits: the agreement is specifically about renting the property after closing, not about a formal long-term lease or an ordinary occupancy without rent. The terms are typically set in the purchase contract or a separate occupancy agreement and cover how long the seller may stay, the rent amount and due dates, who pays utilities, and responsibilities for maintenance and repairs. Because it creates a tenancy, it carries rights and obligations for both parties and can raise issues if the occupancy extends beyond the agreed period, potentially becoming a holdover tenancy if not carefully drafted.

While post-closing occupancy and temporary tenancy describe the situation, the established real estate term for this arranged post-closing stay with rent is rent-back provision. A lease-back agreement is a broader phrase that implies a formal lease arrangement, which may be used in different contexts, but the succinct and common descriptor for this specific post-close rental arrangement is rent-back provision.