When buying a property, it is natural to feel excited to start making it your own. You may have a clear vision of how you want to renovate the space to fit your needs and tastes. Still, it is essential to understand the legal implications of starting renovations before closing the deal.
A buyer’s right to possession begins at closing, not before
In most cases, it is not advisable to begin renovations before closing. Here’s why:
- Legal ownership: Until closing, the property legally belongs to the seller.
- Contract violations: Starting work early may breach your purchase agreement.
- Insurance risks: Your insurance likely will not cover damages before you own the property.
- Financing issues: Lenders may disapprove of changes made before closing.
- Potential deal breakers: Renovations could reveal problems that affect the sale.
Florida’s “doctrine of equitable conversion” states that once a valid contract is signed, the buyer gains an equitable interest in the property. Still, this does not grant full ownership rights or the ability to make changes without permission.
The risks of starting renovations before closing can be significant. If the sale falls through, the buyer might lose their investment in the renovations. The seller could encounter issues if the buyer fails to complete the work properly or damages the property.
Some sellers might allow minor work before closing, such as painting or measuring for furniture. Major renovations are typically off-limits.
Do not take unnecessary risks with your dream home
If you are eager to start work, you may request early access for planning and measurements. Negotiating a rent-back agreement is also an option if the seller needs extra time to move out.
Any agreement should be in writing and approved by all parties, including your lender. Even seemingly simple arrangements can have significant legal implications.
To avoid potential pitfalls, it is crucial to work with a qualified real estate attorney. A Florida attorney can provide guidance tailored to your specific situation and local laws for a successful and stress-free closing.