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Q: “I represent a purchaser and they are considering a pre-settlement occupancy, what do I need to know?” 

A: First and foremost, read the contract. Past that, the biggest thing you need to know is that a pre-settlement occupancy agreement does not follow the VRLTA. Virginia Code § 55.1-1201(C)(6) explicitly carves out these agreements. Therefore, if you have any questions, the agreement itself must answer them.  

But what if I have a question about the agreement due to an ambiguous term or even lack of a term? In this case, you then have to turn to common law. Since you should not be dispensing legal advice, your client needs to hire an attorney to review the form and give legal advice.  

The best practice is before your client signs anything, have an attorney review the agreement and explain it to them. They can and should also review any other terms that should be included to cover your client if necessary. If any situations arise and they are not explicitly in the agreement, they will very likely need particularized legal advice and unfortunately, that is the very nature of these agreements. 

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