FORCED DECISION  “Buyer and Seller agree to extend buyers (Inspection Period, COE, Appraisal Period, etc) to xx/xx/xxxx.”

 

“If seller does not agree to extend buyers xxxx period, this Addendum shall serve as notice to seller that buyer is exercising their right to cancel this purchase contract dated xx/xx/xxxx, and request the immediate return of buyers Earnest Money, effective xx/xx/xxxx, and within buyers x days to give notice of property rejection and cancellation of this purchase contract.”

 

FOR EXAMPLE  “Buyer and Seller agree to extend buyers Inspection Period to xx/xx/xxxx.”

 

“If seller does not agree to extend buyers Inspection Period, this Addendum shall serve as notice to seller that buyer is exercising their right to cancel this purchase contract dated xx/xx/xxxx, and request the immediate return of buyers Earnest Money, effective xx/xx/xxxx at 11:45pm and within buyers 10 day Inspection Period and delivers notice of property rejection and cancellation of this purchase contract.”

 

FRAUD:  Concealment of a pertinent fact to induce someone to act to their detriment.  Also see disclosure.

 

FREON:  EPA Regulations for R-22 Refrigerants: Preparing for the phase out of Freon...timeline 2020.

 

FSBO: HEY I’M DOING ALL  THE FRIGGIN WORK!  Q: I rep a buyer, and had a FSBO agree to do a unrepresented agreement. Now the seller wants me to supply lead based and SPDS etal …. I see it becoming bigger and bigger….I’m thinking they should figure it out themselves or have me do dual agency… the seller is paying 1.5% and my buyer is paying me also, in escrow. What is the HS policy on this?  A: Hi X, I tell agents that rep a buyer with a FSBO seller that they (you) will become the "administrator" of the paperwork since you have access to all forms and documents and they (the FSBO) typically does not. Bottom line is you are helping your buyer close on the house which is your fiduciary responsibility and providing those forms and documents to the seller so the seller can perform is part of that.  Feel free to reach out if you would like to discuss further...Hope all is well.  Jeff.

FSBO:  Dialogue with FSBO:  Agent xyz contacts the FSBO and explains to the owner that she/he represents buyers who would like to see the home.  She asks if the FSBO is cooperating with agents, that is, is the seller paying a commission to the agent who brings a ready willing and able buyer who closes on the purchase of the property.  The seller says that he is aware of the advantages of cooperating with agents and is willing to pay a commission.  Agent xyz tells the seller that he will send over an agreement that states that the seller agrees to pay a commission should the buyers named in the agreement purchase this home and that the seller understands that the agent is working for the buyers and not for the seller.

 

FSBO: REASONABLE SUPERVISION: HomeSmart agents are not allowed to sell their home FSBO. ADRE says that your employing broker must reasonably supervise all of a licensee's real estate activities.  This means reviewing all of your listing and sales and rental contracts.  Therefore, you must create a HomeSmart transaction file for each real estate transaction that you are involved with either as the Listing Agent and/or Seller, Selling Agent and/or Buyer, or Landlord or Tenant.  NOTE:  Q: Question came up among realtors with a difference in opinion so thought I'd reach out to you.  Can a Homesmart agent purchase a home for themselves that is a FSBO without the contract going through HomeSmart?  A: Hi X, No, all real estate activities conducted by a licensee must be supervised by their employing broker.  This is both an ADRE and HomeSmart requirement and is not negotiable.  You would need to create a HomeSmart transaction file anytime you are buying or selling real estate, whether for yourself or anyone you may be representing as a seller/landlord or buyer/tenant client.

FSBO:   Q: We have a buyer that wants to buy one of our friends home which is basically FSBO (not on MLS).  How do I start the paperwork on this/?  Just a contract and seller is unrepresented?... no MLS plano.          A: Hi Krista yes that would be fine.  If you're going to just represent the Buyer and the Buyer is paying you, you'll have the Seller sign the form called the Declination of Real Estate Representation that is on our website.  If you're representing the Buyer, but the Seller is paying you, you'll just need the Seller to sign the Unrepresented Seller Compensation Agreement.  For the MLS requirement you can just upload a Missing Paperwork form (you won't be fined of course) just to state in writing why we don't have that doc in the file.  Everything else will be the same as normal.

FSBO:  GUIDELINES: Q: I have a few questions about representing my buyers when they are interested in a FSBO.  My assumption would be to expect the seller to sign all required paperwork for HS and also work through a Title agency.  What are some guidelines you can give me?  A: Q 1 is compensation.  If the seller is paying you have them sign the form titled "Unrepresented Seller Compensation Agreement" which is located on zipForms and Transaction Desk.  If the seller is not paying you, have seller sign the form titled "Declination of Representation" which is located in the downloads link on RSA.  Everything else should proceed as normal as in any other transaction including depositing Earnest Money and opening escrow with a title company.  You will administer the paperwork as you normally would and will explain all forms and documents to the seller along with treating the seller fairly and honestly, but your fiduciary responsibility is only to your buyer client.  Also be prepared to give the seller "blank" forms where needed, for example a blank SPDS they can complete for the buyer.  Please feel free to call with any further questions.

 

FUDUCIARY RESPONSIBILITY:  REAL ESTATE AGENTS ARE HELD TO THE HIGHEST STANDARD

 

FULL PRICE OFFER REJECTED: ALSO SEE COMPENSATION, REJECTED OFFER:  Q: Just Curious about something…a listing came onto the market Thursday and I showed it on Saturday. I submitted my client’s all cash offer that was $3000 above list as is purchase…The listing agent just told me seller doesn’t know if they want to sell anymore because they may want to let granddaughter live there (it’s a 55 and over community btw). Do they owe me a commission anyway since I brought a ready, willing and able buyer...? A: Hi X, No they wouldn't owe the commission....the listing is just a offering to receive offers.  Even with presenting them with such a solid offer, there is no obligation for them to accept or for them to pay a commission if they choose to reject the offer.  OR   Hi X, Sorry to hear of this situation, but the reality is that the seller is not obligated to sell, even if the home is listed in the MLS and negotiations were ongoing and it was a full price offer.  From a legal perspective, a listing agreement is not a binding agreement to sell. The seller is simply making an invitation to have a buyer make an offer.  In this instance, the seller (family) has simply decided to not sell the home.  Take care, I know you'll get the next one!

 

FURNITURE, ABANDONED FURNITURE, WHAT TO DO WITH LEFT BEHIND COUCH…?  CHRIS COMBS, AZREPBULIC, OCTOBER 4, 2020:  HERE         

 

FURNITURE, PAYMENT DUE: “Certified Funds in the amount of $x payable to Seller due at title company on or before COE.”

 

FURNITURE INCLUDED  “Purchase includes all furniture as seen on xxxxx with  no warranties, conveyed on a separate bill of sale at no monetary value.  Seller and buyer to agree on bill of sale during inspection period or seller to provide bill of sale during inspection period or bill of sale to be agreed upon during inspection period.”

FURNITURE INCLUDED:  “All furniture included as seen on xx/xx/xxxx.  Furniture to convey on separate bill of sale AS-IS with no warranties at no monetary value.  Bill of sale to be agreed upon and finalized during the inspection period.”

 

FURNITURE, REMOVE FROM CONTRACT OR COUNTER OFFER  “Line x of purchase contract (and/or Line(s) xx of counter offer are hereby removed/deleted.  All furniture/personal items to convey by separate bill of sale (or separate written agreement).”

 

FURNITURE, SOME FURNITURE WILL NOW BE LEFT BEHIND BY SELLER:  The following items are being left behind at the convenience of the seller at no monetary value, in as-is condition and with no warranties: Washer, Dryer, Refrigerator, Wine Cooler, Pool Table. No value will be added to the sales price of the home.”

 

GIFT CERTIFICATE:  Q: Please proof read this flyer/Gift Certificate I created and let me know if any changes are required.  Thank you.  A: Hi Ewa, unfortunately this type of advertisement isn't allowable.  Raffles are considered "games of chance" which aren't allowable under the Commissioners Rules.  You can of course give a certificate to people for a discount on their fees, but it can't come as a result of a raffle or drawing.  Also, it would have to be in the form of a commission reduction  (if you're on the Seller side) or a credit towards closing costs (if you're on the buyer side), you can't pay them after the transaction is closed.  It has to be done within the contract.

GIFT LETTER:  FATHER GIFTING $ FOR PURCHASE:  Q: We have a listing with a cash offer.  the Buyer's dad is providing the POF (it is his money for the purchase).  He is not on the contract. What do we need to document that he is gifting this money to the buyer?  Is there anything else we need to do to document this?  A: Hi X, A gift letter should be included outlining that the father is gifting the funds for the purchase and that the source of funds is from the father. I also recommend having language that says the parties agree that the funds will be deposited into escrow no later than a certain date/time, ie, 5 days prior to COE. You should also check with title as to whether or not they will require these funds to be "seasoned" or on deposit for a minimum length of time, if so then the funds should be deposited on or before that time.  Let me know, thx, Jeff.

GIFTS, RAFFLES, PRIZES AT OPEN HOUSE:  Q:  Hello, We are coordinating hosting a community open house to the public, with 5 other agents, who also have listings in the Winfield community in Scottsdale. We'd like to know what the policy is on gift cards, raffles, items of value for attendees. Is that permitted, and if so, are there parameters around the types of gifts, and dollar amounts (split amongst 5 agents, and possibly a lender)? Please let us know how this should be structured. Thank you.  A:  Hi X, Raffles, prizes, gifts, etc are not allowed.  This is regulated by ADRE.  However, lenders are not regulated by ADRE, so the lender can do the raffle, but the real estate agent/brokerage cannot.  So, your off the hook.  If the lender wants to do it, they can.  Take care, Jeff.

GIFT OF EQUITY:  https://www.investopedia.com/terms/g/gift_of_equity.asp   What is a Gift of Equity?  A gift of equity is the sale of a home made to a family member or someone with whom the seller has had a previous relationship, at a price below the current market value. The difference between the actual sales price and the market value of the home is called the gift of equity because the sales price is so much lower than the real market price of the home. Most lenders allow the gift to count as a down payment on the home.

BREAKING DOWN Gift of Equity: A gift of equity requires a gift of equity letter that is signed by both the seller and the buyer. The seller must have an official, paid appraisal completed on their home, noting the appraised value of the home with the price they will be selling for, and recording the difference as the gift of equity on the official paperwork. There will need to be the gift equity paperwork, as well as a second settlement letter noting gift at closing.

A gift of equity can have tax consequences, as it could impact the asset's cost basis for the new homeowner and have capital gains implications for the seller. Additionally, a considerable sale can affect the local real estate market. If a house sells for considerably less than others with comparable features, it may negatively impact other home sales in that price point or area. However, it may be possible for the sale to be done privately or off-market to avoid that complication. The gifters must also follow IRS guidelines for gifts of monetary value, up to $28,000 per couple or $14,000 for an individual per year.

Example of a Gift of Equity:  An example of a gift of equity may be a set of parents who wish to sell their home to their children at a price that they wish to name, rather than going through a real estate office that would demand a certain price for market purposes. The parents would name a price that they agreed on and “sell” the house to their children for that amount, despite the fact that the house is actually worth a lot more. Or, a gift of equity might occur if the individual or persons selling a home want to help the buyer complete the sale by essentially lowering the price of the home in order for the buyer to reach the down payment requirements. A lender can consider the gift of equity as the twenty percent, or other amount required, to complete the sale.

You avoid mortgage insurance if the loan amount is 80% of property value or less. Lenders will accept your parent’s gift of equity of $50,000 as the equivalent of a cash down payment, provided that they are satisfied that the house is really worth $200,000. They will use the appraised value  because the sale price was set within the family rather than through arms-length bargaining.  Gift taxes should not be a problem. Taxable gifts are those to one recipient in excess of $14,000 per year. (Gift recipients never pay taxes on gifts). If you are married and have at least one child, each of your parents could gift each of the three of you $14,000 a year, or $84,000 in all, without it being taxable. If you are married but have no children, you are still OK because your parents can give you and your wife $56,000 in non-taxable gifts in any one year. 

In cases where the gift exceeds the gift tax exemption, part of the gift would be taxable, but your parents don’t pay taxes on it. They must report it on IRS Form 709, and it will be deducted from their “unified credit” , which is the total amount of credit against gifts allowed during their lifetime free of tax. This credit in 2016 was $5.45 million.

GOOD FUNDS:  ARIZONA’S “GOOD FUNDS” LAW:  Arizona law requires that escrow agents not disburse money from an escrow account until funds related to the transaction have been deposited and are available.

Pioneer Title Good Funds Table:  http://www.jennieshook.com/blog/arizonas-good-funds-law/

GROUP HOME:  (Kyle); Q: ALL - Would an assisted living home next door need to be disclosed? We've talked on this before, but I can't remember where we landed.

Could fall under the ADA I would think, but not certain. Who resides there? Elderly or?  Age is not a protected class. However, if disabled folks reside there, could be a a fair housing matter if it is disclosed.

Conclusion is that the seller does need to disclosure there is an assisted living home in their neighborhood?  

So long as the residents are not protected under fair housing, yes.

Does a drug rehab or group home for teenagers need to be disclosed?   Disabled under fair housing, no

GROUP HOME:  (From Mary Francis Coleman) Q: CAN SELLER DISCLOSE A GROUP HOME OR SOME OTHER TYPE OF HOME?  (IE, MENTAL HEALTH, DRUG/ALCOHOL TREATMENT, DISABLED, ETC). A:  Yes.  These all require city, county and/or state business and tax licenses and some may also require other types of professional licenses and would all be considered part of the public record. (No Exemptions).

GROUP HOMES: AZ Dept of Health Services, MAP OF FACILITIES:  https://www.azdhs.gov/gis/health-child-care-and-radiation-control-facilities/

Licensing:  https://www.azdhs.gov/licensing/index.php

GUEST HOUSE SQUARE FOOTAGE:  PLEASE SEE ARMLS, SQ FOOTAGE:  Q: I haven't done a residential listing with a casita in a while. I have forgotten if we are supposed to include the casita square footage along with the number of bedrooms, bathroom it has with the total home square footage, bedroom/bathroom count or not.  A: IT DEPENDS ON WHETHER OR NOT THEY HAVE A COMMON WALL.  IF COMMON WALL, YES.  IF DETACHED, NO.

GUN OWNERSHIP:  Q: Can landlord restrict tenant from owning a firearm?  A: It depends on your state laws.  Some states have passed specific laws stating that a landlord cannot take away a tenants rights to bear arms.  If the state doesn’t have specific laws, then the landlord can make whatever prohibitions they want, so long as it doesn’t violate Fair Housing Laws.  Gun owners are not a protected class of people, so it would not be considered discrimination if you were to exclude them from your pool of tenant applicants.  https://americantenantscreen.com/can-landlords-prohibit-gun-ownership/

HABITABLE:  SEE CLOSE UNDER PROTEST

HAFA Affidavit form required by the U.S. Treasury  (See “Arms Length Transaction”)  Agent is not allowed to receive compensation if he/she is also the Buyer. 

5/28/2013:   Part of the Federal Government's Making Home Affordable (MHA) program, the Home Affordable Foreclosure Alternatives (HAFA) program was developed to give homeowners a way to settle their mortgage debt without going through a foreclosure. The buyer and seller of a HAFA Short Sale will now be required to fully execute the HAFA Affidavit prior to and as a condition of closing.

 

The HAFA Affidavit form certifies: 1) an arms-length transaction; this is the sale of a property in which the buyer and the seller have no existing relationship (they're not family members, friends, business associates, etc.), and are acting in their own self-interest and are under no undue influence or pressure from other parties., and 2) that no money is being given or received that is not reflected on the HUD-1 Settlement Statement.

The HAFA Affidavit will also include an agreement that there are no other agreements, understandings, contracts or offers related to the current or subsequent sale of the property.  

HANDWRITING, MIXED IN WITH TYPEWRITTEN VERBIAGE:  Please have the seller initial all lines on the Exclusive right to Sell where the information was hand written in, lines 11, 12, 16 & 48. Please submit the initialed copy. Thank you  (To ensure language was not added after terms were agreed to between the parties).

HANDYMAN EXEMPTION:  In Arizona “it is unlawful for any person” or entity to submit a bid or provide construction services without a contractor license.  A.R.S 32-1151.  There is commonly cited handyman exemption to this rule which allows an unlicensed handyman to perform work “for which the aggregate contract price...is less than $1,000.”  A.R.S 32-1121(A)(14).  The statute goes on to say “the work or operations which are exempt under this paragraph shall be of a casual or minor nature.” ld.  Moreover, the handyman exemption does not apply if the work requires a building permit.  A.R.S. 32-1121(A)(14)(a).  Accordingly, because the work in this case exceeds $1,000 and is not casual or minor in nature, a licensed contractor must be utilized. 

HAPPY BIRTHDAY:  “Contrary to any language otherwise, either on your birth certificate or drivers license, you are now one year older.”

HARD MONEY LOAN:  I would write on page 8, something like:  1)  This is a hard money loan.  Section 2 Financing contingencies shall apply.  OR  2)  This is a hard money loan to be treated as an "All Cash" Sale.  Section 2 Financing contingencies shall not apply.

HARD MONEY LENDERS (HMLs) are typically private individuals or small groups that lend money (Hard money) based on the property you are buying, and not on your credit score. Usually these loans cost (percentage-wise) much more then an average mortgage, often times up to twice what a regular mortgage does, plus high origination fees.

https://www.biggerpockets.com/renewsblog/2006/12/08/what-does-everyone-mean-by-hard-money/

HAULED WATER:  No Domestic water well addendum required.  Hard to get financing, specialty lender, is hauled water common to the area?

HEALTH INSURANCE:  https://www.healthiestyou.com/ is a teladoc service we offer to agents who are looking for that type of service.  Otherwise, go to aaronline.com (AAR) and go to the member benefits section for more information regarding access to health insurance.  They are also connected to NAR as well.  (Attach screenshot)

HELOC FINANCING:  CASH, SOURCE OF FUNDS IS REFI/HELOC:  Page one of PC:  $xx price, $xx earnest money, $xx cash on or before COE (see additional terms and conditions). 

 

On page 8 write something like:  Source of Funds:  This purchase agreement is contingent upon the successful refinance/HELOC for the buyers property located at 123 Main St, Tempe, AZ.  Refinance/HELOC shall be completed and funds made available to buyer (or funds deposited with escrow) no later than 3 days prior to close of escrow.  Financing Contingencies in this purchase contract, section 2, line #’s xx-xx, shall not apply.  Buyers preliminary refinancing/HELOC Lender approval letter is attached.”  OR

 

Q: I spoke to you about a contract question on Friday the 23rd I believe. It was regarding a client who is writing an offer but needs funds from two HELOCs as the down payment source.   Line 12: *See page 8 for source of additional down payment     Page 8 lines 346-353: *Source of buyer's additional down payment to be from new equity lines of credit on two existing properties owned by buyer. This purchase contract is thus contingent on buyer successfully refinancing both properties and having access to necessary funds through the equity lines of credit. Buyer will deliver to seller confirmation of successful refinances no later than December 26, 2018. Buyer may elect to cancel this contract and receive his earnest money if for any reason he is unable to successfully refinance both properties by the date specified. 

https://themortgagereports.com/22484/bridge-loans-buy-a-home-before-selling

 

HELOC FINANCING, OR REFINANCE OR EQUITY LINE OF CREDIT: Q: I have a question regarding using a HELOC to purchase a house.  How do I write this contract?  A: Hi Susan, here is a brief explanation, please feel free to call with additional questions.  Also, this will be treated as a cash transaction, if you want an appraisal you should attach the additional clause addendum and select the appraisal contingency option, or, order an appraisal and have it completed during your inspection period. 

 

Page one of PC:  

Line #10: $xx price

Line #11: $xx earnest money

Line #12: $xx cash on or before COE, **see additional terms and conditions regarding source of funds.

 

On page 8 write something like:  **Source of Funds:  This purchase agreement is contingent upon the successful refinance (HELOC) of the buyers property located at 123 Main St, Tempe, AZ and having access to necessary funds through the equity line of credit.  Buyer will deliver to seller confirmation of successful refinance of buyers property and funds shall be made available to buyer (or funds deposited with escrow) no later than X days prior to close of escrow (or xx/xx/xxxx date).  Sect 2 of this purchase contract shall not apply.  Buyers preliminary refinancing/HELOC Lender approval letter is attached.”  Buyer may elect to cancel this contract and receive a refund of her/his earnest money if for any reason she/he is unable to successfully refinance this property by the date specified.  (If the seller wants further documentation, you could still go under contract using language such as: “Seller agrees to provide x documentation within 72 hours of contract acceptance or something similar).

 

HIGHEST AND BEST OFFER  (Send via email, could also ask for response on counter offer form).

“Good morning.  The owner has received multiple offers for the property located at 123 Main Street, Tempe, Az. He/She would like to extend an option to all parties to improve their original offer to a new highest and best net offer to the seller before x:00pm, MST, xx/xx/xxxx.  If interested, please submit an addendum to your offer including any new price and/or terms with a seller acceptance time of x:00pm MST that same day.”

I have 2 offers on my listing and the Sellers want to send a multiple offer to each of them. I haven't done a multiple offer so do I just write "Please send your highest and best offer " on the Multiple offer form itself, or is there a counter-offer that is supposed to go with the multiple counter offer?  Please advise. 

       If you're just asking for the highest and best from these Buyers, you would simply email both agents.  You'd say something like

"Thank you for your offer.  I wanted to let you know that we've received multiple offers for this property and my Seller is requesting an addendum with your Buyers highest and best offer by no later than xpm on xx/xx/xxx.  If we do not receive an addendum from you prior to that time, your offer will be considered as it is currently written.” 

The only time you would do a Multiple Counter Offer is if you're asking the Buyer to change specific terms.  In this case, with a highest and best request, you're simply asking them to update their offer.

HIGHEST AND BEST SAMPLE (CAN BE USED WITH MULTIPLE COUNTER OFFER TOO)  http://jamescolincampbell.com/wp-content/uploads/2011/11/Multiple-counter-offer.png

HOLDBACK: WHAT IS AN ESCROW HOLDBACK…?  Escrow holdbacks occur when the seller for whatever reason will not complete repair(s) prior to closing, so the parties agree that title will “hold back” a portion of seller proceeds after closing to pay for repairs that will be completed AFTER close of escrow.   The language for the escrow holdback should state: 1) what the repair item is, 2) who will complete the repair, 3) when the repair will be completed, and 4) how much will be withheld from seller proceeds for the repair.  Additional language should be included to say that if the repairs are not completed by a certain date then the escrow holdback funds will be released to the buyer.  You could make a note of this on the BINSR but an Addendum would also need to be executed as this would be considered changing the terms of the contract.  Title will use this Addendum as "escrow instructions" to create the holdback.  Title will also charge an additional fee to administer the holdback account, you should check with your title company for details on how much they will charge for that.  You will also need to determine which party will pay the holdback fee.

HOLDBACK AND/OR AGREE TO CLOSE WITH ISSUES, CALL IT A “DISCLOSURE”...Keep from the lender, similar to a mold disclosure or AFBD disclosure that are not made part of the contract (borderline lender fraud…?)   See Sample from Realty One in...

HOLDBACK AT ESCROW:  “Seller and Buyer Agree to Close Escrow with incomplete repairs.  Seller & Buyer further Acknowledge and Agree that a “Holdback Account” will be established and $x will be withheld  from Seller’s proceeds by Title Company.  Funds will be made payable to xyz company (or vendor or seller or and/or nominee named before COE) for the following repairs as agreed in the BINSR.  LIST:  xx, xx, xx, xx.  Repairs to be completed no later than xx/xx/xxxx.  If repairs are not completed by agreed upon date, the balance of any funds remaining unused in the “Holdback Account” to be immediately released to buyer.”  

HOLDBACK FOR NEW A/C:  Seller agrees to credit Buyer $5,000 at close of escrow to be held at the title company and used for payment of a new AC unit (or other).  Buyer to submit invoice to title company or payment. 

“Seller and Buyer Agree to Close Escrow with incomplete foundation repairs.  Seller & Buyer further Acknowledge and Agree that a “Holdback Account” will be established and $X will be withheld  from Seller’s proceeds by Title Company.  Funds will be made payable to xyz company (or vendor or seller) once the work is completed for foundation repairs as agreed in the BINSR.  Seller understands this amount is an "estimate" and agrees to pay the final, actual fee charged by the vendor.  Final costs not to exceed $X. Repairs to be completed no later than xx/xx/xxxx.  If repairs are not completed by agreed upon date, the balance of any funds remaining unused in the “Holdback Account” to be immediately released to buyer.  All work to be completed to buyers sole satisfaction.”    

HOLDBACK:  Q: Broker Note says I need an addendum for this?  This is not a credit but an actual payment made by seller at COE to electrician of buyers choice.  I thought I was told I didn't need (and lender doesn't want) an addendum spelling this out? A: Hi X, unless this is part of the BINSR and the repair is being made by the Seller prior to COE, we will need an addendum stating that the Seller has agreed to instruct Title to cut a check to XYZ for work that will take place after closing. Since the Buyer will own the home at that point, they will also need to agree to provide access for said repair. Obviously, this situation can be very sticky - so a better route to take is for the Seller to pay for something else at COE (like the home warranty or the escrow fee) and be done with it in exchange for the Buyer's agreement to let the electrical issue go and deal with it themselves after COE. Hope that helps!

HOLDBACK: FEES, FROM CANCEL, MINOR IN NATURE NOTE FROM TITLE:  We will honestly move forward with whatever agreement you and the buyers agent come to on this. But note that before we can do a hold back the buyers lender will have to authorize the holdback. And we do have to hold 1.5 times to total amount on the estimate.