Holdover Clause
A clause in a real estate contract that allows the seller of a home to remain in possession of the home for a specified number of days after the closing date. If the seller does not give up possession of the property after the specified date, then he or she will usually be charged a holdover fee.
- Example : Lisa sells her home to Ken. The closing takes place on June 1 and there is a holdover clause in the contract allowing her to stay in the home for 2 days after the closing and she will be charged $300 per day thereafter. Lisa stays in the home for a total of 5 days after the closing date. The money held in escrow will be reduced by $900 for the extra 3 days Lisa stayed in the home and given to Ken.
