Get Keys of New House Before Closing

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firsttimebuy

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Has anybody ever come across a situation where the builders will give you the keys of a new house to move into before closing and drawing down the mortgage? I have heard this is called a caretakers agreement just wondering if anybody has done this before?
 
Re: Get Keys of New House Before Signing

Hello,

We purchased a house in Kildare in May of last year. When we signed contracts and paid 10% deposit, we were advised to arrange a meeting with foreman. Much to our surprise, when we met with foreman, he gave us a set of keys and told us to carry out any work on the house that we wished!

We closed on 1st Sept of that year, and by that stage we had the whole place kitted out.... paint, kitchen fitted, fully floored, garden shed etc!

There was no legal agreement for this, just a trusting builder!

Sometimes its no harm to chance your arm and ask.
 
Re: Get Keys of New House Before Signing

Its possible but highly unusual - for very good reason. What incentive has the purchaser to draw down the mortgage and pay the builder if they are already in the house? Its far more sensible all round to observe the formalities - there is less chance of trouble arising that way. A simple case of money for keys,vacant possession and title.

mf
 
Sorry for jumping in here but is it possible to draw down the mortgage without moving into the house (getting the keys)?. In other words, leaving the cheque from the bank with my solicitor until the house is ready and then paying the builder. I'm just thinking about this knowing rates are going up in December with the goal of fixing our mortgage.
 
"is it possible to draw down the mortgage without moving into the house (getting the keys)?. "

I suppose you could, theoretically, but the solicitors problem is that the loan cheque has to be used for the purchase of the property, not to be kept on deposit, and its likely that their undertaking to the bank will be to return the cheque if the sale does not close.

Plus clients get really ansty if they think the solicitor is keeping their interest from them.

All in all, I'd say no, won't work.

mf
 
I should have said, the house is new and we are just waiting for the issues on the snag to be completed (plus waiting on Bord Gais to get their act together). Its just we plan on fixing for 5 years and the savings could be hugh by drawing down now.

Does the solicitor get interest from our money? No wonder he thought it was a good idea.

Again, sorry OP for butting in on your thread but this is related I guess. Thanks for reply there.
 
"Does the solicitor get interest from our money? No wonder he thought it was a good idea."

Not really fair. Firstly, your solicitor might not be cashing the cheque until needed. Some lenders only charge from when the cheque is cashed.

Secondly, the few euro of interest is most likely not the reason a solicitor would be keen to have the cheque: it is just that there are frequently hitches in getting loan cheques, and it is nice to have a transaction where you have the money in place well ahead of time.

Thirdly, if the interest goes into even a slightly serious figure (I think once it is over €150) solicitor has to give it to you - and the book-keeping for this is far more hassle than it is worth.
 
Thanks MOB. I'll take back the harsh comment about my solicitor after learning that. He's pretty good actually. Cheers
 
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