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Why you should never, ever let buyers take possession before closing

08/07/2017

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Your buyers are about to close on a vacant house and must be out of their current property no later than the end of the month. There’s a delay that will push closing back to the third of the next month. What harm could come of letting the buyers take possession a few days early? A friend recently asked me about a family member who was buying a home and had been allowed to fix up the home prior to closing. She also had purchased new furniture as well. Legal, insurance and repair issues My friend voiced her deep concerns about this situation, which is fraught with potential problems. For example, what would happen if the buyer was unable to close — could the buyer file a mechanics lien against the property for the work she did? What would happen if one of the people working on the property was injured — who would be liable? What if the buyer didn’t obtain the appropriate permits for the work — who would be responsible if there was a problem with the building depar…

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