Holding Rehab Funds Credited At Closing??
Making an offer on a 3 unit today (2 sep. titles). My first one! My offer includes 2% credit toward closing costs and $9K per title ($18k total) toward rehab/repairs. My agent has balked at having an addendum to the contract re. the credit, and wants to put it in the contract that the money "will be held" for repairs by settlement attorney or something like that. I want to make sure I like the language in the clause. It needs to be easy to get out!
Any advice???
Time for a new real estate agent! This is not something that should be looked at negatively.
Many title companies will perform escrow services. YOu need to have an agreement or addendum where everyone signs and it is all clear what is to take place and when the payments are to be made and what qualifications need to be met to make them.
IF it is legit repairs ignore the agent! Ask for the 18K at closing as a credit ( you may have to provide bids etc.) and take your money without the hassle.
ALl written offers must be submitted and teh RE agent has no say in this. Make them do it your way.
RAndall
[addsig]
This will definitely be my last transaction with this agent! Way too much hassle.
Thanks for the input.
its your lender who will probably have a problem with the escrow for repairs of that amount. most require the checks to be cut directly to the vendor performing the work. they can not give you the money directly because that is illegal and considered an "inducement to purchase". you shoud do a "rehab loan".