A sell house and rent back agreement is an arrangement where a real estate investing company or home buying company is willing to buy a home property of an individual. In addition to this, the homeowner will be permitted to stay in the same property after the house sale has been completed but he or she would be staying there not as an owner of the property but as a tenant. Of course, as a tenant he or she will have to make monthly rental payments to the home buying company that has purchased the property under the sell house and rent back option.

There are many individuals who have opted to sell and rent back their properties when they were at a risk of facing house repossession. When a person is facing some financial crisis and is unable to make the monthly mortgage repayments, he may get a possession order from a court. In order to prevent house repossession, he will opt for the sell house and rent back option. This way, he will be able to pay back all his debts and then he can continue living in his house as a tenant. It is not necessary for him to move out of his property because although he has sold the property to a home buying company, he is allowed to rent the property back.