Closing on the house without keys from Seller

6 Replies

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?  

They don't have ownership rights to the property if they do not have a deed. BUT, if they show up with an unrecorded lease, or an option, or land contract, etc... they could have an equitable title claim. Make sure you READ your title insurance policy and discuss what is going on with your title company or attorney in case the relatives try to make a claim against the property.

Change the locks and do your thing. Most likely, they won't harass you. I'm assuming Christmas  could be a little tense in the sellers family this year.........

Happy Investing

Derek Dombeck

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.

“This relative actually bought the house in the owner's name”

So you know the seller is cutting out the relative “who bought the house” (your words) , yes?

Did he/she pay the mortgage, and put money down? and the seller is cutting him out and you know this?

Bad karma. I’d fight tooth and nail also.

Is it occupied? (I’d love to hear what happens when you close and try to evict them - the relative. )

"suggested that I change the locks as soon as I close."

Tell him you want the locks all changed before closing. 

Originally posted by @Lauren B. :

“This relative actually bought the house in the owner's name”

So you know the seller is cutting out the relative “who bought the house” (your words) , yes?

Did he/she pay the mortgage, and put money down? and the seller is cutting him out and you know this?

Bad karma. I’d fight tooth and nail also.

Is it occupied? (I’d love to hear what happens when you close and try to evict them - the relative. )

The difficult relative actually started the transaction and not giving us (seller and I) the problem and wants me to back out after me depositing the EM. 

I would actually back out If I was not going to lose my EM, but I will lose if I back out. So...

That sounds suspicious if the relative didn’t fight until after the earnest money was given. I’d be wary of both the seller and the relative

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