How does seller give us $70K to fix sewer problems after close of escrow?

Get Legal Help Today

 Secured with SHA-256 Encryption

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 11 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.


IMPORTANT NOTICE: The Answer(s) provided above are for general information only. The attorney providing the answer was not serving as the attorney for the person submitting the question or in any attorney-client relationship with such person. Laws may vary from state to state, and sometimes change. Tiny variations in the facts, or a fact not set forth in a question, often can change a legal outcome or an attorney's conclusion. Although AttorneyPages.com has verified the attorney was admitted to practice law in at least one jurisdiction, he or she may not be authorized to practice law in the jurisdiction referred to in the question, nor is he or she necessarily experienced in the area of the law involved. Unlike the information in the Answer(s) above, upon which you should NOT rely, for personal advice you can rely upon we suggest you retain an attorney to represent you.

Get Legal Help Today

Find the right lawyer for your legal issue.

 Secured with SHA-256 Encryption