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Updated almost 7 years ago on . Most recent reply

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Ashish Acharya
Tax & Financial Services
Pro Member
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
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Closing on the house without keys from Seller

Ashish Acharya
Tax & Financial Services
Pro Member
#2 Tax, SDIRAs & Cost Segregation Contributor
  • CPA, CFP®, PFS
  • Florida
Posted

BPers, 

I am closing on the house on 4/10 but the situation has gotten little more complicated.  The seller's (Owner's) relative who managed this property is not surrendering the keys to the seller. Seller wants to close on the house without transferring the keys to me during the close and suggested that I change the locks as soon as I close. 

Background:

Owner's relative is mad because he wanted to buy the house but cannot afford right now. This relative actually bought the house in the owner's name just to get around the number of the mortgages. But,  the owners have the legal right to the house. 

I would not go through all these headaches but I am buying this for 50% ARV with a decent condition.

Question

Does this relative have any right to put a lien on the house or come after me after I buy the property?  

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Mark Holencik
  • Investor
  • Coplay, PA
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Mark Holencik
  • Investor
  • Coplay, PA
Replied

Change the locks before you close. You may have the other person living there when you close.

The other person may strip the house. Then destroy the house. 

Your 50% deal will not look so good.

If what you are told is true. The seller will screw you too.

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