Picture this: the odds and ends of a real estate transaction you’re involved with are taking longer than expected to tie up. Whether it be a miscommunication between the realtors, legal issues, or uncontrollable circumstances, you just want the home to close escrow.
So, you have already moved out and agree to let the buyer move in over the weekend since you will be closing on Monday or Tuesday. Even though the final forms have been signed, you won’t close for a few more days. You figure, “Heck, whats the harm?”
Oops. What if there is a financial or legal issue that crops up? Worst of all, what if the new buyer starts making changes to the home and they – or someone they hire – gets hurt on the property before it is officially theirs? What happens if there is a fire? I know of one situation where the seller allowed the buyers to put their belongings in the garage and there was something flammable and it started a house fire. Do you think those buyers still bought the house? No, the sale did not close and the seller was left dealing with a mess and no house to sell.
Now that is a heap of trouble, tripped up by a tangle of confusing liability. What you thought was an act of goodwill has just turned the final few steps of the transaction into an absolute nightmare!
Even if this scenario seems unlikely, it is still possible. And that is reason enough to never let a buyer take possession of a property before the closing is completed. Crazier things have happened!
