How does seller give us $70K to fix sewer problems after close of escrow?
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How does seller give us $70K to fix sewer problems after close of escrow?
Seller has agreed to fix septic/sewer issues. We’ve agreed to ~$70K. He husband is now worried that it’s illegal to write us a check after close of escrow. What does the law say? We have not removed contingencies yet (today) and are scheduled to close escrow on 7/17. Home is in Los Gatos (Santa Clara county) and NOT a short sale.
Asked on June 26, 2009 under Real Estate Law, California
Answers:
Edwin Fahlen / Law Office of Edwin Fahlen
Answered 14 years ago | Contributor
There is nothing inherently wrong with a payment to fix something in lieu of having the seller fix it. There is an exchange of consideration as the seller is relieved of liability (if a release is signed), and the buyer assumes the risk of perhaps the cost to exceed the payment. What is at issue is whether or not the loan documents require representations such as no non disclosed payments from the seller to the buyer exist. If you have more questions you may telephone me (via pager 24/7) at 714.967.1300.
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