Exploring Lease-Back Agreements After Sale for Temporary Housing Stability

What Is a Lease-Back Agreement?

A lease-back agreement (also called a sale-leaseback) is when a homeowner sells their property and, as part of the transaction, signs a lease with the buyer to remain in the home for a set period. The homeowner becomes a tenant, and the new owner becomes the landlord.

These agreements are not long-term solutions, but they can provide short-term breathing room for those who need time to regroup financially, find new housing, or manage a transitional period (such as after a divorce, job loss, or health event).

When Does a Lease-Back Make Sense?

• You need to access equity but aren't ready to move immediately.

• You're facing foreclosure or urgent financial strain and need a fast sale.

• You're managing health-related challenges or caregiving duties and relocation would add too much stress right now.

• You've sold the home but need a few extra weeks or months to finalize your next living arrangement.

In these cases, staying temporarily in your home-on terms that both buyer and seller agree to-can reduce disruption while you plan your next steps.

What Are the Advantages?

Immediate financial relief Selling the property can help clear debts, avoid foreclosure, or create cash flow from built-up equity.

Avoiding abrupt relocation You gain time to find a better, more stable long-term housing option without the panic of a rushed move.

Predictable, short-term housing cost The lease terms are agreed upon during the sale, which can help you budget more clearly during transition.

Reduced stress on household members Especially for families with children, elderly parents, or health concerns, staying in place-temporarily-can help maintain a sense of normalcy while preparing for change.

And the Disadvantages?

You no longer own the home This is no longer your property. You're now a tenant, subject to lease terms.

The lease period is limited Most lease-backs last between 30 to 90 days. In some cases, you may be able to negotiate longer-but it's not guaranteed.

You may pay market rent-or higher Depending on the buyer, the monthly lease may reflect full rental value or include added terms.

No guarantee of renewal Once the lease period ends, you must leave. The new owner may not offer an extension.

Emotional weight of staying in a home you've sold For some, living as a tenant in a home you once owned can feel unsettling or emotionally difficult.

Is This the Right Option for You?

That depends on your situation. A lease-back may give you the stability you need to plan with clarity instead of panic, but it must be entered into with a full understanding of your rights and responsibilities.

Before considering this option, it's essential to have a clear view of your equity, your monthly financial capacity, and your next housing plan.

Next Steps

If you're evaluating whether a lease-back could fit your situation, visit our Resource Center. We offer free, online-only educational materials designed for homeowners just like you-those facing real-life pressure and trying to make smart, informed decisions without being rushed or sold to.

While we do not provide personalized legal or financial services, you'll find information to help you understand the terms you should ask about, questions to raise with professionals, and red flags to avoid.

KING COUNTY REAL ESTATE HELP Supporting informed decisions, stable transitions, and peace of mind-without pressure, calls, or hidden agendas.