An agreement where a home buyer allows the seller to stay in the property in exchange for rent

In a sale-leaseback, the homeowner gives up ownership of a home and becomes a renter. People commonly use a sale-leaseback in these situations: (1) when the seller is buying or building another home and isn't ready to move out on the sale date or (2) when parents sell their home to a son or daughter and remain in the house, keeping the property in the family.