Taking possession before recording the deed?

realestate_newbie
Contributions:9

Hello, we are looking in to closing on our first home very soon. If all works out we will have the lender fund tomorrow and record on Friday. There is a good chance that this will not happen and the lender will only fund on Friday. If this is the case, we can only record on Tuesday, since Monday is a holiday. We were hoping to begin painting etc this weekend since we are on a tight schedule. The seller and sellers agent are okay with us getting the keys on Friday, since the seller has moved out. They want us to sign a release form, releasing them of all liabilities if something were to happen to us before we legally take possession. We already have insurance on the property and we will probably have to setup our own utilities if we do take possession before recording. I would really appreciate your advice on this move. Is there some way we should protect ourselves legally? Thank you very much!

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February 15 - Los Angeles

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Answers (5)

realestate_newbie
Contributions:9

Thank you all very much! If we don't close Friday, I will check with our insurance, that was supposed to have begun yesterday, to ensure that we have coverage before we spend time remodeling in the property.

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February 16

Heather Stevenson, "Heather Stevenson"
- 5.0/5.0
- (9 reviews)
Contributions:62

Everyone is correct in stating that the Seller is the one with the risk in the situation. If the closing doesn't happen (which is rare when you are this far down the road) and you have occupancy they would have to go through formal eviction procedures to remove you from the property if you wouldn't leave willingly. Additionally, if someone is hurt on the property the sellers are legally liable for it. Your insurance won't take effect until you close escrow on the property. Your biggest risk is if you move something into the home and something terrible happened (robbery, fire, etc) your items would not be covered.

Luckily you have a cooperative seller, because if it were my clients I would advise them not to do it. Congratulations on your home and I hope it closes Friday!! (Find out the funding cut off for the lender (normally at 12:00) and call first thing in the morning to make sure they have everything they need to fund)

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February 15

Barbara Provence, "Barbara Provence"
- 4.9/5.0
- (3 reviews)
Contributions:10

First of all, let's hope you record on Friday. Otherwise the seller carries most of the liability since they still own the home. So you're lucky that they are willing to take the chance! Talk to your insurance carrier to make sure you are still covered in this situation. And congratulations on your first home!

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February 15

Gary Boyer, "Southland_Properties"
- 0.0/5.0
- (no reviews)
Contributions:54

The risk is for the seller, not necessarily for you. If I were representing a seller, I would never allow it, but if the seller has no problem, you are taking very little risk.