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Possession Prior to Closing
As a matter of convenience to both parties a vendor may agree with a purchaser to allow the purchaser into possession prior to the closing date on condition that the purchaser signs a caretaker’s agreement and places the balance of the purchase money in a joint deposit account in the names of the vendor’s and purchaser’s Solicitors. This is most common where a closing document is not immediately available.
The solicitors for both vendor and purchaser should, before possession is taken, be satisfied that the outstanding document will ultimately become available.
It is very unwise to allow a purchaser into possession in circumstances where there is an outstanding item which may not become available. In such circumstances both vendor and purchaser should be advised clearly as to the dangers.
Both parties should also be advised of the insurance risk implications.
