Often times someone purchasing an investment property will falsify an Affidavit of Occupancy by claiming to live at the particular property, thus reducing their interest rates.
Lying on an Affidavit of Occupancy can have dire consequences in the long run if the lender ever researches who is actually living in the property being borrowed upon. A lender has the right to void the mortgage and assess fines due to this type of misrepresentation on the loan.
The composition of an Affidavit of Occupancy consists of:
• An address block for the occupied property in question.
• Dates and signatures of the owner or builder of the property.
• A certification or acknowledgement of the date the residence will be occupied.
• A sworn oath in the presence of a notary.
The Affidavit of Occupancy is a document included in a loan package that must be notarized with a Jurat. This particular notary procedure requires a sworn oath and must be signed in front of the notary public.