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Post Closing Occupancy Agreement for Saudi Arabia

Post Closing Occupancy Agreement Template for Saudi Arabia

A Post Closing Occupancy Agreement governed by Saudi Arabian law is a legal document that enables the seller of a property to temporarily remain in occupancy after the closing of the sale. This agreement, which must comply with both Saudi civil law and Sharia principles, establishes the terms and conditions for the seller's continued occupancy, including duration, compensation, and responsibilities. The document addresses specific requirements under Saudi Arabian property law and includes provisions for utilities, maintenance, insurance, and property condition, while ensuring compliance with local municipal regulations and cultural considerations.

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What is a Post Closing Occupancy Agreement?

The Post Closing Occupancy Agreement is utilized in situations where a property seller requires temporary continued occupancy of the sold property after the closing date. This arrangement is common in Saudi Arabian real estate transactions where sellers need additional time to relocate or complete their new housing arrangements. The document must comply with Saudi Arabian real estate laws, civil transaction regulations, and Sharia principles, making it distinct from similar agreements in other jurisdictions. It typically includes detailed provisions for occupancy fees, maintenance responsibilities, insurance requirements, and property condition documentation. This type of agreement is particularly relevant in both residential and commercial property transactions where immediate vacancy after closing is not practical or desired by the parties involved. The agreement serves to protect both parties' interests while maintaining compliance with local legal requirements and cultural norms.

What sections should be included in a Post Closing Occupancy Agreement?

1. Parties: Identification of the Seller (temporary occupant) and Buyer (temporary landlord), including full legal names and contact details

2. Background: Context of the agreement, including reference to the main sale transaction and reason for post-closing occupancy

3. Definitions: Key terms used throughout the agreement, including Property, Occupancy Period, Compensation, and other relevant definitions

4. Term of Occupancy: Specific start and end dates of the post-closing occupancy period

5. Occupancy Fee and Security Deposit: Details of daily/monthly occupancy fee, payment terms, and security deposit arrangements

6. Utilities and Maintenance: Responsibility for utilities, maintenance, and repairs during the occupancy period

7. Insurance and Liability: Required insurance coverage and allocation of liability during the occupancy period

8. Use of Property: Permitted use of the property and any restrictions during the occupancy period

9. Property Condition: Requirements for maintaining the property condition and documentation of existing condition

10. Access Rights: Buyer's rights to access the property during the occupancy period

11. Default and Remedies: Consequences of default and available remedies for both parties

12. Termination: Grounds for early termination and the process for ending the agreement

13. Governing Law: Specification of Saudi Arabian law as governing law and reference to Sharia compliance

14. Dispute Resolution: Process for resolving disputes, including jurisdiction and venue

15. Notices: Method and addresses for formal communications between parties

16. Execution: Signature blocks and execution requirements

What sections are optional to include in a Post Closing Occupancy Agreement?

1. Holdover Provisions: Additional terms that apply if the Seller remains in possession beyond the agreed occupancy period

2. Property Management: Terms regarding property management if a third-party manager is involved

3. Moving Arrangements: Specific provisions regarding moving logistics and timing, if needed

4. Special Conditions: Any unique circumstances or requirements specific to the property or parties

5. Force Majeure: Provisions for unforeseen circumstances preventing compliance with the agreement

6. Assignment and Subletting: Terms regarding whether the Seller can assign or sublet during the occupancy period

7. Pets and Animals: Specific provisions regarding pets if relevant to the situation

8. Cultural Considerations: Specific provisions addressing local Saudi customs or requirements

What schedules should be included in a Post Closing Occupancy Agreement?

1. Schedule 1 - Property Description: Detailed description of the property including address and any included/excluded items

2. Schedule 2 - Payment Schedule: Detailed breakdown of occupancy fees, security deposit, and other financial terms

3. Schedule 3 - Property Condition Report: Detailed documentation of property condition at the start of occupancy

4. Schedule 4 - Insurance Requirements: Specific insurance requirements and minimum coverage amounts

5. Schedule 5 - Move-out Inspection Checklist: Criteria for final inspection and return of security deposit

6. Appendix A - Related Sale Agreement Reference: Key details from the main sale agreement affecting the occupancy

7. Appendix B - Utility Transfer Forms: Forms and procedures for handling utility responsibilities

8. Appendix C - Emergency Contact Information: List of emergency contacts and important service providers

Authors

Alex Denne

Head of Growth (Open Source Law) @ Ƶ | 3 x UCL-Certified in Contract Law & Drafting | 4+ Years Managing 1M+ Legal Documents | Serial Founder & Legal AI Author

Jurisdiction

Saudi Arabia

Publisher

Ƶ

Document Type

Agreement Contract

Cost

Free to use
Relevant legal definitions



































Clauses



































Relevant Industries

Real Estate

Residential Property

Commercial Property

Construction

Property Development

Property Investment

Banking & Finance

Legal Services

Property Management

Relevant Teams

Legal

Real Estate

Compliance

Risk Management

Property Management

Contracts Administration

Corporate Affairs

Operations

Transaction Management

Relevant Roles

Real Estate Lawyer

Property Manager

Real Estate Agent

Legal Counsel

Compliance Officer

Contract Manager

Real Estate Developer

Transaction Coordinator

Property Administrator

Risk Manager

Legal Director

Real Estate Investment Manager

Corporate Counsel

Closing Coordinator

Industries







Teams

Employer, Employee, Start Date, Job Title, Department, Location, Probationary Period, Notice Period, Salary, Overtime, Vacation Pay, Statutory Holidays, Benefits, Bonus, Expenses, Working Hours, Rest Breaks,  Leaves of Absence, Confidentiality, Intellectual Property, Non-Solicitation, Non-Competition, Code of Conduct, Termination,  Severance Pay, Governing Law, Entire Agreemen

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