Here’s the story behind a furniture fiasco I experienced.

As real estate professionals, we don’t share some of the contractual documents with the lender. Certain parts of the contract are just between the buyer and the seller, like repair requests.

The most common of these items includes furniture that conveys with the home. Back in the day, we used to write in the contract that furniture conveys at no monetary value; essentially, that it’s included with the price of the house.

A couple of years ago, I was working on the purchase side of an FHA transaction. We were in the midst of the negotiations and the property conveyed furnished, which was really appealing to my client. We got the deal close to the close of escrow and we got a bill of sale for the furniture, which is very common. The bill of sale is a private contract between the buyer and seller that states the furniture is included in the sale of the home.

“One FHA rule states that you cannot convey furniture with the sale of the home.”

For some reason (likely due to their inexperience), the listing agent shared that addendum with the lender. Again, this was an FHA deal, and the FHA appraiser said that they wouldn’t fund the transaction unless the property was vacant. One FHA rule states that you cannot convey furniture with the sale of the home.

Here’s the C R A Z RE  part: The buyer and his friends rented a U-Haul, parked it around the corner, and loaded it up with all the furniture. The next morning, the FHA appraiser came out and did an inspection; they saw that it was vacant and funded the deal. We closed escrow and then moved the furniture back in 12 hours later.

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