Howdy johnpaulcavanaugh-ga,
A reminder of the "Important Disclaimer: Answers and comments provided on
Google Answers are general information, and are not intended to substitute
for informed professional medical, psychiatric, psychological, tax, legal,
investment, accounting, or other professional advice."
From a "legal" standpoint there does not appear to be any law against doing
as you propose, and in fact this is not an unusual thing to happen. From
the web site of Deborah Ham.
http://www.dhcoach.com/real_estate/buyer/essential_steps.html
"The date you actually move into the house is determined by the pre-agreed
'terms of possession'; stated in the mutually accepted offer/contract. Move
in usually happens only after the deal is funded and recorded. In some cases,
the previous owner is given a couple of days after closing to move. In others,
the buyer might move in before closing, paying 'rent' until the actual
recording."
However, you should read the following "Buyer Possession Before Closing"
article by Janet Wickell on the About.com web site, before doing this.
http://homebuying.about.com/cs/buyingahome/a/buyerpossession.htm
" ...
The buyers might feel the house is already theirs and begin to make
changes--maybe changes you wouldn't appreciate.
...
The buyers might start making a list of extra 'repairs' that are needed before
closing.
...
Worst case, the buyers may trash the house.
...
Wording should include details about what will happen if the sale does not
close on time--or never closes."
You should read the above article in detail for pitfalls, hints and tips to
heed before or if you hand over the keys to your house before closing.
According to this article by Ron LeGrand titled "12 Ways to Lose a Sale," it
could be one way, well, to lose a sale. From the REIClub web site.
http://www.reiclub.com/articles/12-ways-lose-sale
"Allowing the Buyer to Move into the House Prior to Closing
At best it will cost you in things they find wrong with the house. At worst,
they may decide this is not the house for them after all. What happens if an
air conditioner unit goes out (around $10,000) during their stay, but before
closing. You can put it in the contract that such things are their problem,
but who is in the driver's seat at this point? Besides, they used all their
money on the down payment, right?"
If you need any clarification, please feel free to ask.
Search strategy:
Google search on: buyer "move in" "before closing"
://www.google.com/search?q=buyer+%22move+in%22+%22before+closing%22
Looking Forward, denco-ga - Google Answers Researcher |
Clarification of Answer by
denco-ga
on
24 Jul 2005 19:38 PDT
Howdy johnpaulcavanaugh-ga,
As you probably know, it is very difficult, if not impossible, to prove a
negative, that is, there are no lists of things that are legal, but rather
just lists of things illegal. To that point, I have found no indication of
an owner/seller giving the keys to the buyer before the closing as being
illegal or even against any rules or regulations, just possibly ill advised.
For instance, here is an article titled "When Can We Move In?" as written
by Sandy Gadow, who is described as a "licensed mortgage broker and real
estate sales associate, Sandy is a member of the American Land Title
Association, the California Escrow Association, and the National Association
of Real Estate Editors." If there was a law, rule or regulation against
doing what you describe, I would certainly think she would mention it.
http://www.escrowhelp.com/articles/19990820.html
"Many buyers wonder when they actually can move into their new home. They
wonder when possession actually takes place. Most buyers take possession of
their home the day of closing. The keys and other security devices are handed
from the seller to the buyer at the closing and the house has officially
changed ownership.
...
Sometimes possession is given to the buyer before the closing and other times
the seller may need to stay on in the property after closing, and possession is
given at a later date.
...
Or, if the buyer needs to move in before closing, the seller will often let him
take possession early. The seller may prepare an occupancy agreement, which is
a form of a lease for the property. This lease agreement would cover the time
which the buyer intends to occupy the property prior to the closing date."
Here are a few links to California real estate regulations, etc.
California Real Estate Inspection Association (CREIA)
http://www.creia.org/
California Department of Real Estate
http://www.dre.ca.gov/relaw.htm
California Department of Real Estate Regulations
http://www.dre.ca.gov/regs_sub.htm
Looking Forward, denco-ga - Google Answers Researcher
|
