The Pitfalls Of Possession Before Closing
You’ve finally sold your home and you’re really excited, but there’s this little “issue” that has come up ~ your buyer wants to move into your home before closing escrow.
Their moving truck is parked in front of your home and is costing them fifty gazillion $$$ a day to sit idle, it’s the only day they can move, it’s Friday and they have to move in over the weekend, it’s the only day the buyer’s brother-in-law can help them move, they start their jobs Monday, yada, yada, yada ~ get the picture?
They’re being really nice about it, they’re nice folks, and you don’t want to look like a jerk.
Well, get over it!
Here’s why:
Allowing a buyer to move into your home before closing is not a good idea for a variety of reasons, including risk of loss or damage to your home, insurance issues, legal issues, and the possibility of failing to close.
What will happen if there’s a last-minute problem that prevents closing (tax lien, judgment against buyer, loan doesn’t fund, the buyers went out and bought a new SUV and blew their loan approval, etc.)?
What happens when their lawn mower leaks gas, the water heater pilot light ignites the fumes, and your home burns down before you close and get your money?
What happens if the water heater blows up, the A/C or furnace goes out, etc. ~ after the buyers have had their home inspection, signed off on their final papers and put their money into escrow, but escrow hasn’t closed ~ and they are living in your home?
Plus, it’s impossible for the buyers to get homeowner’s insurance coverage prior to close because they aren’t the owners, and they probably won’t bother to get renter’s insurance coverage for just the few days before closing, leaving some big unanswered insurance questions if the house gets damaged or destroyed.
Or, the buyers move in, get a severe case of buyer’s remorse, decide they’re going to get a divorce, and decide they really don’t like your house as much as they thought they did?
How much fun will you have and what will it cost you to get that buyer to vacate your home after you learn the deal isn’t going to close?
Yeah, I know ~ I’m negative and I worry too much.
Trust me, I have experienced ALL of the above scenarios and NONE of them were enjoyable!
Phil’s Tip Of The Day: Hand over the keys after you have closed and received your money!
June 26th, 2007 Posted in Uncategorized | Edit | 
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