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Occupancy Clause Agreement

Violation of your occupancy clause is a form of mortgage fraud. Your mortgage company may revoke your mortgage and make the entire loan due and payable. If you can`t pay for it, it could lead to a seizure. Mortgage companies can also submit a suspicious activity report to draw the government`s attention to potential mortgage fraud. This relationship could make it difficult or impossible to refinance or move to another home. This is the most important advice of all. If you plan to use this type of agreement during your transaction, write it down in writing. Not only that, but make sure you have a professional – that is, either your lawyer or your real estate agent creates the papers. While a few days they don`t seem to make such a difference, you don`t want to leave anything to chance.

Your principal residence is subject to different tax rules compared to real estate held as investments. The difference is that you live on the property. The occupancy clause states that you will occupy your home as your principal residence. Of course, this doesn`t mean you`ll never be able to leave, but your mortgage agreement may require you to notify the bank if you intend not to be home for a certain period of time. Otherwise, it could be mortgage fraud. 11.4 Nothing in this Agreement limits: (a) the liability of the Owner and/or Guest to Under The Doormat; or (b) the customer`s liability to the owner. In situations where a home buyer really needs to move into the home before the closing date, a use and occupancy agreement may be the only option that can maintain the unity of the transaction. Use and occupancy are typically used when a home buyer finds themselves in a really difficult situation and not just for convenience. The owners` occupancy clause is not a lifetime obligation. Typically, your lender expects you to live in your new home for at least a year. Lenders take emergency situations into account, provided you can secure your emergency requests.

Job transfers, changes in marital status and the relocation of the geographical area where the house is located are considered good reasons for you to change your occupation from the original mortgage statement. If you`re moving to your new home shortly after the fiduciary service ends, it`s a good idea to send a written letter to inform your lender of your move and the valid reasons for leaving the home. Avoid visiting the FBI by telling the truth about a mortgage application. If a lender receives an indication that you have violated the occupancy clause in your application, drastic measures can be taken. Be honest. However, there is certainly no „default“ use and occupancy agreement; There are several common provisions in a use and occupancy agreement….