By doing this you keep an asset in your possession and get to take the tax breaks fromt he IRS on the equity loan.

Is there any chance they will come back and take possession of the property?

It should be done the day they take possession, to avoid any confusion about anything that might happen to the property between signing and possession...For example, if they sign the checklist on the 18th, and the house is vandalized on the 19th (before they take possession), they won't want to responsible (and they shouldn't be).

Seller may not be able to convey possession at the time of closing.

Factors that indicate that a taxpayer has the benefits and burdens of ownership include: 1. the right of possession, 2. the right to obtain legal title upon full payment of the purchase price, 3. the right to construct improvements, 4. the obligation to pay property taxes, 5. the risk of loss, 6. the responsibility to insure the property and 7. the duty to maintain the property.

Once our offers are except and we have taken possession of the property, we will begin the process we came up with on the scope of work outlined when we determined our max offer price.

He does have a notarized DT in his possession that he has yet to record.

Then when u take possession have them sign a new lease at your desired price.

I do it myself, all of the forms are on the county clerk's website, and it takes about 3 weeks from the date I file it until the sheriff removes them and costs a little over $300 with filing fees ($200), process server ($30 per tenant) and $90 to the sheriff to serve the writ of possession if they haven't left by the time you get your judgement entered.

Good point Marcia as to occupant.An occupant is any party in occupancy or possession, may or may not be a tenant or lease named in any lease or rental agreement.As to limiting occupancy, this can get touchy as a tenant has rights of quiet enjoyment, the right of use and the definition of family may include unmarried or same sex members.