Do I Really Need a Hold Harmless Agreement?

Do I Really Need a Hold Harmless Agreement?

A Hold Harmless Agreement is where a Buyer and Seller enter into an agreement for the protection of all concerned.

This agreement typically states where one of the parties voluntarily assumes full responsibility for any risks of loss, property damage or personal injury, including death, or loss or damage to a property owned.

This being a written contract, obviously it can be customized for each individual situation.

When a Seller wants to use this agreement, they will typically want to hold over into the property they are selling after settlement, until such time they are able to occupy their next property with a time stipulation. The Seller is still liable for certain things as far as utilities, insurance etc.

When a Buyer wants to use this agreement, they will typically want to occupy the premises with their physical body and/or personal contents prior to settlement. They will usually have all utilities turned over into their name and definitely have an insurance policy in place. They also use this agreement just to do some minor repair or cosmetic work to the property prior to settlement.

This works very well in the cases stated above. I personally would only use this if it is absolutely necessary if all the terms and conditions cannot be satisfied in the negotiating prior to contract ratification. This is normally known up front, but in some cases, it sometimes arises that this may have to be procured due to something holding up the settlement for one reason or another.

So, do I really need a Hold Harmless Agreement? You bettcha, or you are holding yourself out for tremendous liability with no protection.

Be proactive and let it be a win win for all concerned and another happy homeowner is in the books