Contract RED Flags 3 of 6


RED FLAG:  Agreement to Escrow for repairs.

Best Practice:  All repairs must be made prior to closing. This protects your client from unexpected costs and ensures the lender’s collateral is safe and sound. 

When the market is tight and folks really want to make deals out there, there are a lot of things that go one between buyer and agent (or at least discussed) that should never happen.  This is certainly one of those circumstances where ALL repairs NEED to be done by a licenced contractor before closing and receipts provided before closing.  Side deals and escrow for these repairs are not good practice and MOST lenders will NOT allow escrow for repairs.

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: