Use and Occupancy Agreement (U&O)

A Use and Occupancy Agreement, or U&O, is a short-term contract that lets one party live in or use the property when they do not yet own it, or after they have sold it. The two common versions are a pre-closing U&O, where the buyer moves in before the sale is final, and a post-closing U&O, where the seller stays on for a set number of days after closing while they finish their move. It sets a daily rate, who covers utilities and damage, and a firm move-out date. A U&O is not a lease and does not create tenant rights, which is exactly why it is kept short and specific. It is a useful bridge when a buyer and seller cannot line up their Closing Disclosure and move dates perfectly.