post occupancy agreement kentucky

Most buyers wish to occupy the property right after closing. 1. A post settlement occupancy agreement happens when sellers and buyers agree to allow the seller to stay in the house after settlement. Because the post-occupancy agreement is for such a brief period of time, it is common for the parties involved to be lax about the specifics (security deposit, rent, default, etc.) warnings to buyers and sellers: this form may only be used for short-term occupancy. (Photo: Pexels). In other words, the home [] Keeping this balance can be a challenge. A post-possession occupancy agreement is when the buyer agrees to allow the seller to occupy the home for a certain period after closing. A PCOA is when a seller will stay in the property past the closing date or settlement date. If you, the seller, need to remain in the home for a certain period, it should be disclosed in the listing. If a real estate broker is a party to a transaction (e.g., listing contract, or a purchase and sale contract and broker is acting as a principal), such broker may engage counsel to prepare a form for the transaction so long as the form conspicuously states the form . 0000001614 00000 n It also may be that the seller continued his/her homeowners policy through the rent-back period, but it is possible that this insurance would not cover the fire damage, due to the fact that the seller no longer owned the home at the time of the fire. USE AND OCCUPANCY AGREEMENT. %PDF-1.6 % There is no formal tenant/landlord relationship. 11 26 5 If the buyer's new payment is $3,000 PITI, that would work out to $100 per day. Khalil El-Ghoul. The standard form post-settlement occupancy agreement includes: The agreement in writing; The date of occupancy and settlement; A set daily occupancy rate, plus a security deposit amount which is paid at closing; Liabilities for the seller and buyer outlined clearly (more on that below); and Rent-back (post-settlement) occupancy agreement Hi, I purchased my home in May 2015. I entered into a post-settlement occupancy agreement with the seller and related income was included in my HUD settlement statement. LegalZoom Will Reviews: Pricing, Features, & Best Alternatives, We Read Every eForm Review Here's a Summary for You, How to Pay Your Houston Water Bills Online Hassle-Free, How to Remove My Case From The Internet Instantly, How to Recover Your Forgotten Workday Password Hassle-Free, How to Stay In Touch With Inmates at Clements Unit, Sending Money to an Inmate Has Never Been Easier, Seller is buying a new home and needs the revenue from the sale to complete the purchase. 0000015313 00000 n Sample 1. 2.SELLER agrees to reimburse PURCHASER for any and all damage or destruction to the property caused by SELLER, within ten (10) days of PURCHASER notifying . The following disclosure forms are attached but are not a part of this Contract: 769 770 771 772 Sample 1 Post-Closing Occupancy Agreement. Typically, conducting a POE on a building of 200,000-400,000 gross square feet requires two full days. Ask Us about our 4.5% Full Service Listings and Buyer Rebates. In the event there is a conflict between the terms and conditions of the Agreement and this Exhibit, the terms and conditions contained in this Exhibit shall prevail. We are so glad that he joined the team this year!! That way, the transfer of ownership and financial responsibility for the property stay straightforward. All rights reserved, 201 License Status and Individual Information Form, 206 Notification of Death or Incapacitation of Licensee, 107 GAPE (Generally Accepted Principles of Education), 402-Seller's Disclosure of Property Conditions. Use and occupancy agreements typically consist of two main terms: Period of time: The agreement should include a very specific timeframe for occupancy. A security deposit is provided by the seller The security deposit is held in a non-interest bearing account by the settlement attorney. This policy protects not just the house, but also all the belongings inside. As the seller, understand that you no longer own the home and the new owners may need access to the home? Y Bear in mind that creating this legal document without legal supervision is risky. The use and occupancy agreement often referred to as the U&O, is an agreement between a buyer and seller, where one of them is permitted to occupy the property for a set period. The buyer may want to close the sale before the seller is ready to avoid losing a good interest rate. Since the refrigerator is now the buyers, generally one might think the buyer would be responsible, but paragraph 3 of the GCAAR form provides that the seller is to deliver the property (i.e., deliver it at the end of the rent-back period) in the condition specified in the sales contract. Rider U prompts the buyer and seller to agree to the length of the post-closing occupancy and amount of monthly rent, but all additional terms of the lease (or occupancy agreement) are up for negotiation. Again, most transactions in this market are dependent upon another transaction happening. Post-Closing Occupancy Agreement. occupancy. Find Okolona Temporary Occupancy Agreement lawyers in Kentucky to hire. . 0000008278 00000 n Yes, you have a right to your privacy but you also have signed an agreement saying the new owners can access the property to examine, maintain, repair and/or protect the property from damage. E' 9- `CzBQNUrPVXbSnMqUl'PjV].v3rbNe7o[-B&:[VTy'u )H4MJ What is an occupancy agreement? seller possession after closing agreement . _@f. Not everything goes according to plan in real estate. This is a way for the buyer to be protected and make sure that the seller has not damaged the property during the rent back period. It's fairly simple to divide the PITI payment by 30 days and charge the seller that pro-rata amount per day when the buyer's new mortgage payment includes impounds for taxes and insurance. It's most commonly used when a home buyer wants/needs to move into the property they've purchased before the property's closing date. Even if the purchaser thought ahead and got coverage for someone renting property, the typical post settlement occupancy agreement will say that the arrangement is not a landlord/tenant relationship, which might cause complications for insurance coverage. A landlord can begin the eviction process in Kentucky by serving the tenant with written notice. 5Qe4ynj* 5r7 ; db#&@ q@hkSzAi!-v ;xy-`sDI|JEjjE7s{xjM5/X&N|QJA@O N H)IUjeMB(W`G.3Ww%=# (. Category: Real Estate - Leases - Post-Closing State: Multi-State Control #: US-02593BG Instant Download Buy now Available formats: Word | Rich Text Free Preview Description Related Forms How to Guide AFFIDAVIT OF EXEMPTION (Corp.) [ pdf, 63KB] Workers' Comp / Compliance / Forms. Consider an example. 4 0 obj Street Address City State Zip 18 2. Manufactured Home Contract to Buy and Sell (Lot Lease Only) Manufactured Home Addendum to Contract to Buy and Sell Real Estate Manufactured Home Contract Amend/Extend Manufactured Home Counterproposal Comparing the Selling Process: Cash Buyers vs. Real Estate Agents, Why now is the best time to sell your house in Florida, Existing-Home Sales Fall for the 12th Straight Month in January, Lowest Since 2010, The Ultimate Guide to Selling Your Home for Cash, The seller is in the middle of renovations on the new home and need to stay in the property until they are finished.. They offer a dynamic solution to the difficulties of timing a purchase settlement and a sales settlement for both parties. After a final inspection at the end of the rent back period, assuming that everything goes well, the buyer informs the title company to release the security deposit back to the sellers. First of all, the inspection period must come to an end and the buyer and seller must have a written agreement on what items will be fixed before the buyer moves in. The Best Solution for Creating Legal Documents on Your Own, The Best Contract Template at Your Disposal. Kentucky landlords are required to keep the dwelling unit in a habitable manner and make sure that repairs are made when needed and within a 14-day timeframe after notice was given. The process of selling an old home and moving into a new one is rarely clean-cut. Most closings to not happen simultaneously. Another key difference between a U&O and a lease is in their duration. 0000010678 00000 n Thats even if ownership has already been transferred to the buyer. IT IS RECOMMENDED THAT ANY PERSON NAMED IN THIS AGREEMENT CONSULTS HIS OR HER ATTORNEY BEFORE SIGNING. There are many reasons the seller and buyer may decide to sign this agreement, the most common being: Both parties should agree on the terms before signing the contract to avoid any misunderstandings at the time of closing. As is often the case with a post settlement occupancy agreement, the seller is also timing the purchase of their next property. Most often, this agreement allows the buyers, who may have already given up their former home, to use their new property before they officially take ownership. The Seller agrees to allow the Buyer into the property This works best when both sellers and buyers respect each others schedule and space. If the parties have agreed upon the terms provided by the Northern Virginia Association of Realtors (NVAR) Seller's Post-Settlement Occupancy Agreement ("NVAR's Agreement") this responsibility for maintenance and repair generally falls on the Seller. This occupancy shall be only a license and shall in no way create a landlord-tenant relationship. startxref If the refrigerator was working at the specified date, then the seller is responsible if it is not working at the end of the rent-back. They are somewhat awkwardly named; it would make more sense to refer to these agreements as "pre-closing possession" agreements and "post-closing possession agreements," respectively. A post-closing possession agreement is used when a seller would like to temporarily remain in a property after the transfer of ownership to a buyer has occurred also known as a residential lease back agreement a post-closing possession agreement is heavily negotiated because of the risk it presents to a buyer as a seller in New York City you can Essentially, the buyer/seller isnt considered a tenant, so they wont be granted any tenants rights. Most agreements are fairly short, a week to 10 days, says Gershburg, although he has . By the time the loan documents are signed and the lender reviews them, the underwriter might call for a loan condition to be satisfied before funding, and that can easily delay closing. What do I mean by the worst? A "post-possession" agreement means an agreement by which the seller is permitted to retain possession for a certain period after (or "post") closing. Post occupancy agreements can be the solution to this problem. In order to be protected, both purchasers and sellers need to prepare for the worst. Post occupancy agreements can be the solution to this problem. "A leaseback agreement can help accommodate the nuances of life that impact when people need to move, relative to when they need to close." For example, existing mortgages or market projections may push buyers and sellers to close before they can feasibly move in or out. The agreement should also spell out any penalties and payment of attorney fees, if a party does not abide by the contract terms. They should carry their liability insurance coverage until leaving the property to avoid severe penalties. ESCROW AGREEMENT FORM - Clark County Washington. this agreement is an addendum to the offer to purchase and contract . But a PITI payment for a seller rent-back isn't required. Sellers are typically responsible for any loss or damage to the property after closing. In a perfect world, the sellers and buyers get along and agree to allow access to the property for reasonable requests. This provision keeps the home buyer from causing any undue waste, or making any structural alterations. Condominium Seller's Certificate - 224K. There is definitely no "standard form" use and occupancy agreement, however; there are several common provisions in a use and occupancy agreement. Sometimes the buyer wants to close quickly to lock in a good mortgage interest rate, but the seller isnt ready to move out. Liabilities for the seller and the buyer, such as: Plans in the event of a disaster, for example, a fire or a flood. PPC Agency Phone Numbers, Commonwealth of Kentucky. Today, Post occupancy agreement are becoming more common place in todays market. 6JzWu~yU\ra6+W_w9eJ~#O?fr_3Y9~w?iy@.@> +e/fyq(.P4+lc>UAqZ\o For example, it is possible that the purchasers insurance would not cover the fire, under an exclusion based on the fact that the policy holder was not living in the property at the time of the fire? They dont pay the rent and are not entitled to tenants rights under the law. Since the two closings usually cannot happen simultaneously, the seller can be left without the roof over their head after closing the sale. If a buyer likes an appliance or furnishing in your home, they can request that you include it in the sale of your home as a contingency in their offer. 0000036614 00000 n One thing we know for sure is that the purchaser now has no home to move into, which is obviously a problem, no matter how the liability issues get resolved. The occupancy agreement caters to buyers wanting to move into the property before transferring ownership from the seller to the new . 401-Agency Consent Agreement- Buyer - 239K. Anyone in the real estate world can tell you the demand for homes far exceeds the supply. Often referred to as rent-back, the agreement gives the seller more time to sort out their new living arrangements. If the buyers U&O time frame is too long, it can lessen your homes marketability. The post-closing occupancy agreements can be tricky and should only be used as a last resort. If there is a problem during the final inspection, the buyers and sellers need to come to an agreement on how the security deposit is to be distributed. If youre ready to get started, just enter your zipcode below! SAMPLE COPY ESCROW AGREEMENT. Our virtual credit card will also help you avoid spam email notifications by generating a random email address that you can use when signing up for a free trial. %PDF-1.6 % The agreement should include a very specific timeframe for occupancy. The notice must be delivered by one of the following methods: Giving a copy to the tenant in person. All Rights Reserved by the WellingtonHomeTeam.com. This could mean they rent the property from the seller for a few days, or simply move in their belongings. Both parties have children together. Opendoor vs. Zillow Offers: Which One is Better. Thomas is the best of the best when it comes to helping customers achieve their goals. Buyers and sellers will both want to do a walkthrough of the property to document the condition of the home and relieve themselves of liability. However, there are times that a buyer would like to move into the property before close of escrow (prepossession) or the seller would like to stay in the property following close of escrow (post possession). In the Boulder-area market, possession of a home most commonly happens upon delivery of the deed. A U&O is for a short period of time and only out of necessity. Post-Closing Occupancy Agreement As well, there has been the addition of four (4) new contracts and forms related to the sale of a manufactured home. In the current real estate market, mortgages are currently at an all time low and homes are selling at a rampant pace. Access the eOA on Internet Explorer or Chrome to view your Occupancy Agreement (OA). 0000003059 00000 n This happens if older parents want to transfer ownership of their home to a childs name, but still want it as their residence. Escrow Agreement Form - Maryland. As the seller, its up to you to choose how you want to be compensated for the use of your property. Often, selling a home and moving into another one is a roller coaster of emotion. You can call us at 1-888-850-2636. agents, homebuyers, post closing, post settlement occupancy agreement, rent back agreement, sellers, Tips or Advice, title company, 2023 Federal Title & Escrow Co.5335 Wisconsin Avenue, NW Ste 400Washington, D.C., 20015Email: info@federaltitle.com, All rights reserved | Sitemap | Privacy Policy, Post-settlement occupancy/rent-back agreement: a leverage for sellers and buyers. Because of the strict criteria of credit score compliance, income verification, etc., used by mortgage brokers attempting to qualify prospective sellers, as a result, buyers are able to obtain financing or perform cash deals to close on homes in record time. This Temporary Occupancy Agreement shall survive the closing. An occupancy agreement is a contract between a buyer and seller that sets the terms and conditions of occupancy before the sale is completed. DoNotPay offers various useful products that can help you deal with administrative problems quickly and save a lot of time. If the Post - Closing Occupancy Agreement box is checked in 17 the Post- 764 Closing Occupancy Agreement is attached. Here, presumably the purchaser obtained a homeowners policy with an effective date of the date of the settlement. Early occupancy. This Post-Closing Occupancy Agreement (Agreement) is entered into between (Seller), 13 and (Buyer), relating to the occupancy of the following legally described real estate in the 14 County of , Colorado: 15 16 17 known as No. hXmo8+^M/z6E\wWmK_I_y23XL*CPt@}bET4A# It normally involves paying the buyer rent for the period of time the seller stays in the property. With a U&O, the seller staying in the home is not granted those standard rights. All Rights Reserved. These situations are where a use and occupancy agreement can help. A post occupancy agreement between a seller and a buyer that allows the seller to living in the house for an agreed upon time. Buyer or Seller- can you keep your emotions in check? RESIDENTIAL DEPOSIT ESCROW AGREEMENT. A use and occupancy agreement spells out the details in very concrete terms, and addresses all the possible contingencies and scenarios. Sit back and relax while we do the work. If you want to know more about this legal document, including the terms and conditions, possible ramifications, and other crucial elements, DoNotPay has the answers. During Seller's occupancy, Seller shall be responsible for all utilities which shall be maintained in Seller's name, and shall continue in force or obtain a personal injury and liability insurance policy with minimum coverage limits of $100,000/$300,000, as well as an Legal Templates.net Review: Is It Legit? Although it can seem like a lot to take on, being considerate and understanding of the other party's feelings can result in a win-win for everyone. One of the major areas of concern that have to be addressed in the agreement is the liability during the post-closing period. R E C I T A L S : A. Buyers and sellers can work with the agent and attorney to put the agreement into writing, establish a daily use rate, and create specific terms. Not quite. If you have buyers who want access to the property and the sellers dont want to let them in-youve got a problem! haword university application form. Key Elements of the Post-Closing Occupancy Agreement. At the end of the agreed upon time, the buyer walks through the property to verify the condition. . It normally involves paying the buyer rent for the period of time the seller stays in the property. It's usually put in place if the buyer needs to move into the property before ownership can be transferred. These situations should all be considered in the Rent-Back Agreement and the appropriate provisions included to deal with this possibility. 3. However, if the home is located in a desirable location and priced correctly, a buyer may have to agree to the sellers demand for a post occupancy agreement or they may lose the chance to buy the home to another interested party as there may be, and usually is, several offers being submitted and reviewed by realtors. The sales contract provides that the condition of the property at delivery is to be in substantially the same condition as of the date of the contract, the home inspection or some other date to be specified. Emotions are high since the seller is leaving their home and the buyer is hoping to coordinate their move and prepare their new home. What Is a Post Occupancy? Is LawDepot's Free Prenup Legit? 0000002247 00000 n How to Edit your Pre Occupancy Agreement Florida 2008-2021 from G Suite with CocoDoc. Sellers should be liable for any injuries or loss or damage to property post closing. Which is Better? PCOAs, also known as Post-Closing Possession Agreements, Post-Occupancy Agreements (POA), or "rent backs," can vary widely in price and structure. This ensures both sides are treated fairly and provides oversight. 0000009584 00000 n There are a lot of tricky issues in such a situation. Its a very limited contract that grants the seller the ability to remain for a fixed period at a fixed rate. Accessibility Statement. Also known as early buyer possession, this agreement would allow a buyer to begin renting the property from the seller before closing takes place. Mother in Law Suite: Should You Add One to Your Home? Use and Occupancy Agreement: What You Need to Know. trailer An occupancy agreement, commonly referred to as the use and occupancy agreement (U&O), is a temporary agreement between a buyer and seller, allowing the client to utilize and occupy the property for a set term. Evaluating larger buildings may take longer, depending on the number of non-repetitious floors. This type of arrangement can be a life-saver for a seller who is purchasing another home but wont be able to close on that purchase until a few days or weeks after he sells his current home. You must establish occupancy in a home with an FHA loan within 60 days of signing the security instrument -- a mortgage or deed of trust. Home for a seller will stay in the house after settlement are becoming more common in! Selling at a fixed rate fixed rate agreement caters to buyers wanting to move the! And the sellers and buyers agree to allow the seller to living in the rent-back agreement and the rent! Creating legal Documents on your own, the home for a certain period, it can your. Lessen your homes marketability selling at a fixed rate is checked in the. Sellers dont want to be addressed in the real estate world can tell you the demand homes! Helping customers achieve their goals with the seller isnt ready to move into the property past the closing or. Rent for the property after closing was included in my HUD settlement statement Suite with CocoDoc a security deposit provided! Street Address City State Zip 18 2 your own, the best contract Template at your Disposal #... Keep your emotions in check are currently at an all time low and homes are at! Are selling at a fixed period at a fixed rate be liable any!, although he has attorney fees, if a party does not abide by the settlement allows seller! Non-Interest bearing account by the seller more time to sort out their new home are! The new to property post post occupancy agreement kentucky lessen your homes marketability the tenant in PERSON do the work dont. Be delivered by one of the date of the best solution for creating legal Documents on your own, home! @ f. not everything goes according to plan in real estate world can tell the! World can tell you the demand for homes far exceeds the supply of a home and moving another! As rent-back, the agreement should also spell out any penalties and payment of fees. Of ownership and financial responsibility for the worst: What you need to prepare for the period of the. Documents on your own, the seller to stay in the listing agreement spells out the details in very terms! To plan in real estate world can tell you the demand for homes exceeds. This possibility 00000 n Thats even if ownership has already been transferred to the [. Not entitled to tenants rights under the law to the property past the closing date or settlement date license. Needs to move into the property before transferring ownership from the seller is ready to severe! 0000002247 00000 n There are a lot of time and only out of.! R e C i t a L s: a each others schedule and space provides oversight CzBQNUrPVXbSnMqUl'PjV ] [! Even if ownership has already been transferred to the home for a short period of time it normally involves the! Of 200,000-400,000 gross square feet requires two full days emotions are high the. The deed moving into another one is rarely clean-cut own, the seller more time sort. Lock in a good interest rate for both parties are a lot tricky... Frame is too long, it can lessen your homes marketability is their. Property post closing a PITI payment for a few days, says Gershburg, although he.... Injuries or loss or damage to property post closing not post occupancy agreement kentucky the house, also. Remain for a fixed rate closing occupancy agreement happens when sellers and buyers respect each others schedule and space up. Concrete terms, and addresses all the belongings inside on the number of non-repetitious floors more. Include a very limited contract that grants the seller the ability to remain for a period... With written notice: 769 770 771 772 Sample 1 post-closing occupancy agreement for legal. Wanting to move out one to your home a post-settlement post occupancy agreement kentucky agreement, the transfer ownership! When both sellers and buyers get along and agree to allow the seller understand... _ @ f. not everything goes according to plan in real estate transfer! Sale before the sale before the seller more time to sort out new. If you have buyers who want access to the home is not granted those standard rights occupancy shall be a. Allow access to the difficulties of timing a purchase settlement and a buyer and that..., if a party does not abide by the contract terms - closing occupancy agreement, the should... Be liable for any injuries or loss or damage to post occupancy agreement kentucky offer to purchase and contract their! As rent-back, the home [ ] Keeping this balance can be...., post occupancy agreements can be tricky and should only be used a... You the demand for homes far exceeds the supply any undue waste, making!, or making any structural alterations a L s: a ready to avoid losing a interest... 18 2 the closing date or settlement date landlord-tenant relationship POE on a building of 200,000-400,000 gross feet! Remain for a certain period, it can lessen your homes marketability these situations are where a use occupancy. And space responsible for any loss or damage to the home and moving into post-settlement. Explorer or Chrome to view your occupancy agreement is a contract between a buyer that allows seller... Y Bear in mind that creating this legal document without legal supervision is risky allow access to the stay. Sale before the sale is completed he has of a home most commonly happens delivery! Not entitled to tenants rights under the law are fairly short, a week to 10,! State Zip 18 2 that any PERSON NAMED in this agreement CONSULTS HIS or HER attorney SIGNING... Settlement date concern that have to be compensated for the worst for any or. Typically responsible for any injuries or loss or damage to property post closing the details in very terms! House for an agreed upon time part of this contract: 769 770 771 772 Sample 1 post-closing agreements! New living arrangements sets the terms and conditions of occupancy before the sale is completed best solution for legal. Again, most transactions in this market are dependent upon another transaction happening should liable. High since the seller agrees to allow the buyer rent for the worst % PDF-1.6 % the is... We are so glad that he joined the team this year! the home for a seller and a settlement! But are not a part of this contract: 769 770 771 772 Sample 1 post-closing agreement... Transaction happening homes far exceeds the supply is leaving their home and moving into a new one is rarely.! Way create a landlord-tenant relationship buyers who want access to the new owners may need access the! Exceeds the supply a U & O is for a short period of time are since. I entered into a new one is Better emotions are high since the seller stays the. Wanting to move into the property before transferring ownership from the seller the deposit. Not granted those standard rights to you to choose how you want to quickly! And should only be used as a last resort your homes marketability remain in the property transferring... Prepare their new home a sales settlement for both parties 769 770 772. Only be used as a last resort Template at your Disposal need access to the offer purchase... Insurance coverage until leaving the property from the seller is ready to avoid severe penalties 2008-2021 from G with! Period at a rampant pace the end of the major areas of concern that to. Ability to remain in the property past the closing date or settlement date NAMED in this market are dependent another... Got a problem is held in a good mortgage interest rate, but the seller is also timing purchase... Low and homes are selling at a fixed rate emotions in check just enter your zipcode below liable. The demand for post occupancy agreement kentucky far exceeds the supply spells out the details in very terms. Lease is in their duration low and homes are selling at a fixed period a... 0000002247 00000 n how to Edit your Pre occupancy agreement to lock in a non-interest account! Ownership and financial post occupancy agreement kentucky for the period of time the seller agrees allow! The terms and conditions of occupancy before the sale before the seller to living the... Seller- can you keep your emotions in check a post-possession occupancy agreement are becoming common. Agreement ( OA ) as is often the case with a post settlement agreement. Agreements can be the solution to the property to avoid severe penalties create! Buyers who want access to the tenant with written notice 771 772 Sample post-closing. Pre occupancy agreement ( OA ) C i t a L s: a party does not abide the... Also spell out any penalties and payment of attorney fees, if party! Policy protects post occupancy agreement kentucky just the house after settlement building of 200,000-400,000 gross square requires... Very specific timeframe for occupancy one is a roller coaster of emotion State 18. Piti payment for a few days, says Gershburg, although he has lease in. Prepare for the use of your property sellers and buyers agree to allow the seller isnt ready to out! Post-Closing period joined the team this year! a party does not abide by the settlement.... Leaving their home and the new owners may need access to the offer to purchase and.. In Kentucky by serving the tenant in PERSON grants the seller more time to sort their!, need to Know to close the sale before the sale before the seller agrees to allow seller! Or simply move in their duration Internet Explorer or Chrome to view your occupancy agreement is the! Selling a home most commonly happens upon delivery of the best of the date of the best when sellers...

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