http://www.illinois-attorney.com/lp21.htm POSTCLOSING POSSESSION When a seller is holding possession beyond the closing date, the buyer's attorney will have two main concerns. First, the seller will be asked to pay a daily rate for use and occupancy of the property in the amount of the daily rate of the purchaser's new mortgage payment plus taxes and insurance. Second, the seller will be required to post a "possession escrow" or a certain amount of dollars to guarantee that the seller will actually move out. A common amount to be posted is two percent of the sale price. Many contracts call for a possession escrow which is used to pay the daily rental. This is generally not a good idea as there is no recourse against the seller once the escrow is echausted. A better provision would be to specify that the escrow is to be used as a penalty which is forfeited in full if the seller fails to deliver possession and which is paid in addition to the daily rental amount.