March 11th, 2019 at 1:58 pm
Answer: No, it’s still a bad idea. C.A.R. drafted the standard-form POSA not because it approves its use. Instead, C.A.R. decided that, if a sales transaction must include pre-occupancy storage, it would be better to have a standard form for that purpose, rather than rely on the parties or agents to draft such an agreement. In fact, the bottom of the POSA specifically states in all-caps and bold font as follows: “Brokers do not recommend pre-occupancy storage. . . . If Buyer and Seller agree to pre-occupancy they are doing so against the advice of brokers and at their own risk.”
Those warnings are appropriate. The POSA is a very basic agreement that does not address various issues that may arise, including, but not limited to, removal of buyer’s contingencies, proof of buyer’s insurance before move-in, and injuries that may be sustained during the move. Moreover, if the purchase agreement falls apart and the buyer does not remove his or her things from the home as required, the seller could be held liable for throwing away the buyer’s things, rather than pursuing the seller’s legal remedies through the legal process. The bottom line is that so many things can go wrong with a pre-occupancy storage agreement that the risks may substantially outweigh the benefits.
-Thank you to Sandy Mathews (Ladera Ranch Office) for suggesting this week’s legal tip.
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