Assignment of Rents

[Pearce G.]

I'm at the re-fi stage of my first BRRRR property. I'd like to hear the community weigh in on something that came up at closing today.

Working with a local bank...56K portfolio loan.  One of the closing documents was an Assignment of Rents.  Basically, it gives the lender the right to step in and take over collecting rent, enter the property, make repairs, etc.  I was aware of the requirement, but assumed it was in the event of a default.  However, the language clearly gives the lender the right to commandeer the property even in the absence of default, purely at their discretion.

My attorney agreed it was an overreach, but said it was highly unlikely that a lender would interfere with a performing loan.  Yes, but...

Would you sign that document?