Seller is not transferring keys at closing.

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Seller is not transferring keys at closing.

Ashish AcharyaBusiness Member
CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes

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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Max T.
Investor · Philadelphia, PA · Member since 2015 · 3k+ posts · 3k+ votes
8y

I would demand the house be delivered vacant of all possessions and occupants at closing AND with keys delivered to you at settlement.

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  • Joe SplitrockPro Member
    Moderator
    Rental Property Investor · Sioux Falls, SD · Member since 2015 · 9k+ posts · 18k+ votes
    8y
    Originally posted by @Paul Sandhu:

    A 4.5" angle grinder with a cut off wheel will remove a door knob.  You need a flat blade screwdriver to take care of the rest.

    If there is a deadbolt, you'll need a 7" angle grinder with a cut off wheel.  There isn't enough clearance between the door frame and the bull nose of the dead bolt to fit a 4.5" grinder.

    You'll need a source of 110 volt alternating current.  I keep a power invertor in my truck, along with an angle grinder and a host of other property management tools. 

    It'll take you 30 minutes the first time. 10 minutes thereafter.  Wear leather gloves and hearing protection.

    22 STRs with 82 beds is what I have.  Bank foreclosures with 25 cents on the dollar is what you can buy in my market. Google "Worst place to live in Kansas." It is Coffeyville, my market.

     Or he could just have the tenant unlock the door for him. That seems easier to me.

    1Reply
  • Bradford Clark
    Charleston, WV · Member since 2017 · 113 posts · 50 votes
    8y
    And this is why you get Title insurance/ hire a lawyer. Changing locks are pretty simple
    1Reply
  • Steve Babiak
    Real Estate Investor · Audubon, PA · Member since 2009 · 13k+ posts · 8k+ votes
    8y
    Originally posted by @Bradford Clark:

    And this is why you get Title insurance/ hire a lawyer.

    Changing locks are pretty simple

    Maybe you didn't quite notice that @Tom Gimer , who has posted in this thread, happens to be a lawyer AND does title insurance ...

    1Reply
  • Ashish AcharyaBusiness Member
    OP
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    8y
    Originally posted by @Tom Gimer:
    Originally posted by @Ashish Acharya:
    Originally posted by @Michaela G.:

    It's no big deal to change the locks. I bought a lot of reos and i hardly ever got the keys.

    With that said, i would dig a little deeper in that previous purchase. Did the relative put down payment to purchase? If so and if he has proof, I'd be careful. He might not walj away all that easily. That's why the owner of record is likely willing to sell that low. Sort of like the cheated on wife who sells the husband's belonging for $ 1 just to spite him. You get a great deal, but you might be getting a lot of bad energy with it.

     thanks. I talked to the lawyer and said my transaction with a seller is not affected by if there is a litigation in a family. thanks :) 

    Did you happen to mention to the lawyer you're paying 50 cents on the dollar? 

     I value your input there. 

    This is what the closing attorney said "I asked the seller whether his brother has any interest in the property and he said no. I also double checked the title and seller is the only person on a title. There are no other recorded agreements or contracts. Based on this I’m ready to issue an owner’s title insurance policy and require the seller to sign a seller’s affidavit." 

    Would you be satisfied? 

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  • Bradford Clark
    Charleston, WV · Member since 2017 · 113 posts · 50 votes
    8y
    Originally posted by @Steve Babiak:
    Originally posted by @Bradford Clark:

    And this is why you get Title insurance/ hire a lawyer.

    Changing locks are pretty simple

    Maybe you didn't quite notice that @Tom Gimer , who has posted in this thread, happens to be a lawyer AND does title insurance ... 

    I’m sure you are aware that lawyers hire lawyers. I would suggest hiring a specialist in any situation. Or are you trying to be smart and/or  criticize ?  

    1Reply
  • Tom GimerBusiness Member
    DMV · Member since 2017 · 3k+ posts · 3k+ votes
    8y
    Originally posted by @Ashish Acharya:
    Originally posted by @Tom Gimer:
    Originally posted by @Ashish Acharya:
    Originally posted by @Michaela G.:

    It's no big deal to change the locks. I bought a lot of reos and i hardly ever got the keys.

    With that said, i would dig a little deeper in that previous purchase. Did the relative put down payment to purchase? If so and if he has proof, I'd be careful. He might not walj away all that easily. That's why the owner of record is likely willing to sell that low. Sort of like the cheated on wife who sells the husband's belonging for $ 1 just to spite him. You get a great deal, but you might be getting a lot of bad energy with it.

     thanks. I talked to the lawyer and said my transaction with a seller is not affected by if there is a litigation in a family. thanks :) 

    Did you happen to mention to the lawyer you're paying 50 cents on the dollar? 

     I value your input there. 

    This is what the closing attorney said "I asked the seller whether his brother has any interest in the property and he said no. I also double checked the title and seller is the only person on a title. There are no other recorded agreements or contracts. Based on this I’m ready to issue an owner’s title insurance policy and require the seller to sign a seller’s affidavit." 

    Would you be satisfied? 

    Our inquiry would go beyond the guy walking away from the settlement table with all the money.

    If this were our transaction we would require both brothers to sign the deed in order to eliminate any future claim.

    Good luck.

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  • Matt M.
    Realtor · Denver, CO · Member since 2013 · 2k+ posts · 1k+ votes
    8y

    I've drilled locks with my cordless. It's surprisingly easy. You should change locks anyways.

    1Reply
  • Elvis Vasquez
    Accountant · Miami, FL · Member since 2017 · 144 posts · 54 votes
    8y

    What if the guy starts living in the house before the sale? Would you need a writ of possession to remove him?

    1Reply
  • Ashish AcharyaBusiness Member
    OP
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    8y
    Originally posted by @Elvis Vasquez:

    What if the guy starts living in the house before the sale? Would you need a writ of possession to remove him?

     It’s a rental property.

     I have already talked to the tenants, and they are on board. 

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  • Jeremy Paschedag
    Rental Property Investor · Saint Louis, MO · Member since 2016 · 162 posts · 53 votes
    8y

    How was closing? Any problems?  Are the locks rekeyed?

    1Reply
  • Ashish AcharyaBusiness Member
    OP
    CPA, CFP®, PFS · FL · Member since 2017 · 5k+ posts · 3k+ votes
    8y
    Originally posted by @Jeremy Paschedag:

    How was closing? Any problems?  Are the locks rekeyed?

    Hey, thanks for asking. Strangest Closing. I did not even meet the seller. They came in and signed before me. 

    It's been two months. no problem at all. All the locks are rekeyed. 

    It was a good deals.  :) 

    [email protected]941-914-7779
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