Unauthorized Pre-Closing Renovations: Your Legal Rights & Next Steps in 2026
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Understanding the Pre-Closing Access Problem
One of the most concerning situations in real estate transactions is when buyers begin work on a property before the sale officially closes. This gray area creates significant liability issues, legal complications, and potential financial consequences for sellers. In the scenario described above, the seller's agent granted access and permission for renovations without explicit authorization from the actual property owner—a major red flag that requires immediate attention.
The fundamental issue here is that until closing occurs and the deed transfers, the seller retains full ownership and liability for the property. Any injuries, damage, or incidents that occur on the property during this pre-closing period could expose the seller to substantial legal and financial risk. When a real estate agent facilitates unauthorized work, they may have exceeded their authority and created problematic conditions.
Liability Concerns When Buyers Work Before Closing
Before a property closes, the seller remains the legal owner and is responsible for what happens on the property. This is a critical detail that many sellers don't fully understand until problems arise. If a buyer or their contractor is injured while doing work on your property before closing, you could be held liable. Your homeowner's insurance likely won't cover injuries caused by work being performed by the buyers or their contractors.
Consider these liability scenarios:
- A contractor is injured while doing foundation work—who's responsible for medical bills and workers' compensation?
- Damage to neighboring properties occurs during unauthorized renovations—can the neighbor sue the seller?
- Improper electrical work creates a fire hazard—could the seller face liability if someone is harmed?
- The work causes structural damage that wasn't disclosed—does this affect the sale or create claims against the seller?
Additionally, if the buyers or their contractors cause damage to the property itself during these pre-closing renovations, disputes may arise about who pays for repairs. The contract should specify that the property must be returned in its current condition until closing. Work done without permission could violate this provision.
Your Real Estate Agent's Authority and Responsibilities
A real estate agent's primary duty is to represent their client's interests, not to make unilateral decisions about property access and permissions. In this case, the seller's agent appears to have overstepped their authority by telling the buyers they could begin work without getting explicit written permission from the homeowner.
Real estate agents have specific limitations on their power of attorney. They cannot:
- Grant access to the property without the owner's consent
- Agree to modifications of the purchase contract
- Accept liability on behalf of the seller
- Allow work that violates the terms of the purchase agreement
If your agent facilitated unauthorized access, this could constitute a breach of their fiduciary duty to you. Agents are required to act in their client's best interests, and allowing unsupervised work before closing certainly doesn't fit that description. You may want to discuss this with your agent's broker to understand what authority was exercised and why.
Immediate Steps to Protect Yourself
If you discover that buyers have been working on your property without permission, take action immediately:
Documentation and Communication
Document everything. Take photos and videos of the work being done, the condition of the property, and any damage. Get written confirmation of when access began, what work is being performed, and by whom. Send a written communication to both the buyer and the real estate agent clearly stating that you did not authorize this work and that access to the property must cease until closing.
Review Your Purchase Agreement
Examine the purchase agreement carefully. Most contracts include clauses about property condition and possession. Typically, the buyer doesn't take possession until closing. The agreement should specify that the seller maintains control and that the property must be returned in its current condition. If the buyers are violating these terms, this is a contract breach that could affect the sale.
Notify Your Insurance Provider
Contact your homeowner's insurance company immediately and report the situation. Explain that unauthorized work is being performed on the property before closing. Ask about your coverage and whether you're protected if someone is injured. Your insurer may want to be involved in the situation.
Consult a Real Estate Attorney
This situation warrants legal review. A real estate attorney can review your contract, assess your liability exposure, and advise on next steps. They can send a formal letter to the buyers and your agent clearly stating that work must stop immediately and that you're not assuming liability for any injuries or damage.
Preventing This Situation: Key Contract Protections
While you can't undo what's already happened, understanding what protections should exist can help you moving forward. A well-drafted purchase agreement should include several clauses that protect sellers in this exact situation:
| Protection Type | What It Should Say | Why It Matters |
|---|---|---|
| Possession Clause | Buyer gets possession only at closing after title transfer | Prevents any work before closing |
| Condition Requirement | Property must be in current condition at closing | Holds buyer liable for any damage from unauthorized work |
| Access Limitations | Access only during inspection period or with written permission | Gives seller control over who enters the property and when |
| Liability Clause | Buyer assumes all liability for work performed before closing | Protects seller from injury claims |
| Insurance Requirements | Buyer must carry liability insurance for any work done | Ensures financial protection if incidents occur |
Negotiating With Buyers After Unauthorized Work
Once unauthorized work has begun, you're in a complicated position. Here's how to handle negotiations:
First, determine whether you want to continue with this sale. If the buyers are already making major changes and violating contract terms, this may not be a trustworthy transaction. However, if you want to proceed, you need clear agreements about liability and property condition.
Establish a written agreement that specifies:
- The buyer assumes all liability for injuries or damage from the work being performed
- The buyer maintains comprehensive liability insurance during this period
- Any damage to the property will be repaired by the buyer at their expense before closing
- All work must comply with local building codes and permits
- A final inspection will occur before closing to document the property condition
Get this agreement signed before any additional work continues. Verbal agreements aren't sufficient protection in real estate transactions. Everything must be documented in writing.
Key Takeaways
- Sellers retain full ownership and liability until closing—any injuries or damage are your responsibility unless you've transferred liability in writing
- Real estate agents cannot unilaterally grant access or permission for unauthorized work without explicit seller consent
- Document all unauthorized work with photos, videos, and written communication
- Notify your insurance provider immediately about the situation
- Consult a real estate attorney to protect your interests and assess liability exposure
- Require written agreements that transfer liability and insurance responsibility to the buyer
- Consider whether this transaction is trustworthy enough to continue with given the contract violations
Frequently Asked Questions
Can I stop the buyers from working on the property before closing?
Yes, absolutely. You own the property until closing, which means you have the legal right to control access and activities on it. Send a written notice to the buyers and your real estate agent demanding that all work cease immediately. If they refuse, your attorney can send a formal cease-and-desist letter. Most buyers will comply when they understand the legal implications.
Am I liable if someone gets injured during pre-closing renovations?
Potentially yes, which is why this situation is so serious. As the property owner, you may be held liable for injuries that occur on your property. Your homeowner's insurance likely won't cover injuries caused by work performed by buyers or their contractors. This is why you need to involve your insurance company and attorney immediately and get written confirmation that the buyer assumes liability.
Should I cancel this sale?
That depends on several factors: the contract terms, how much the work has progressed, whether there's been any damage, and your comfort level with this buyer. If the buyers are violating contract terms and ignoring your authority as the owner, these are warning signs about the transaction. Consult with your attorney about whether cancellation is possible and whether it's in your best interest given the circumstances.