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What are the risks of a sale-leaseback arrangement?

The biggest risk is losing control of your former home - the new owner can decline to renew your lease, raise rent, or sell to another buyer who will not honor the arrangement. You also lose the benefit of future appreciation. Leaseback terms should be negotiated into the sale contract with specific duration, rent amount, and termination provisions. Without clear contractual protections, you are a tenant with no guaranteed occupancy.

From the seller playbook: Post-Sale Lease-Back Structures

This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.

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