Investment propertyJust Give Me The Keys Please
It"s almost yours. (Isn"t that kind of like being a "little" pregnant?) Why
won"t the builder of your new home just let you have the keys to your new home
while you"re waiting for all those "technical" aspects of your closing to take
place? After all, you"ve done everything you"re supposed to do. You signed
the documents, took every last red cent of down payment and closing cost money
to the escrow company. Now they say it"s just a matter of time until this
house, with all your special upgraded selections, is actually yours, or, as
they call it. "on record". What"s the harm?
From a builder standpoint, there could lots of harm in permitting buyers to
have keys to place any personal items in the house before it is legally
theirs, or "on record". Just from a liability standpoint alone, it makes bad
business sense to do this. And most builders I know would stand firm on this,
making it clear that "it ain"t over "till it"s over." In our litigious
society, a builder could have a very tough time of it if you had any form of
occupancy of the house you are about to call home before title has passed to
you. Builders think that it would be nearly impossible to reverse this
process, even if it permitted you to line shelves, fill up the garage with
boxes, or put a " things" in place before you actually occupy. If any items
were stolen, the house burned down, or someone was hurt on the property, the
builder would be put in the unenviable position of being somehow responsible,
since the property is still theirs. The best laid plans, as they say, may not
include delays in the loan funding, clouds on title holding up the recording,
or some other unforseen disaster. Any and all of this is to be avoided by the
builders of new homes by simply not handing over keys until they receive that
glorious call (and music to everyone"s ears) from the title company,
conforming that you are "on record".
From time to time, a builder may permit a "garage rental" as a last resort,
especially if the reasons for the delay were due to some blatant error on
their part. This agreement requires you to sign a "hold harmless" clause, and
permits you to use the garage area for storage of your personal belongings.
Keys to the interior garage door (to the house) are usually not given to the
buyer, and the most agreements permit access through the garage door and side
access door only. You are responsible for attaching your own extra locks to
protect your belongings, for any damage to the garage itself, and you must
have proof of having procured a special type of rider on your homeowner"s
insurance for this agreement. A "per day" rental amount is usually written in
to the agreement, which is paid up front until the day title records. Garage
rentals are not common, however, and each builder has a different policy
regarding the use of them.
How can you hedge yourself against literally being up against a wall at
closing time? Prepare for the worst, and hope for the best, especially in
times of almost universal construction delays such as these. Buffer your
walk-through, signing, and recording by at least a week to ten days. If you
are in a home that is sold and in escrow, ask the buyers to "rent it back" to
you for several days after they close as insurance for the unknown. Not only
will this prepare you in case there"s a hitch, it will save your sanity and
make your move more leisurely and less stressed. They say there are few more
stressful events in life than moving, and I believe it! Emotions run high at
this exciting (and sometimes dreaded) time, but it may actually turn into a
pleasant and memorable experience if you give yourself a break by allowing a
few days of extra time. So, get the camera out, plan a moving party, and keep
the pizza parlors in business for a few nights. Just don"t plan on it until
the house is really yours.