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If I am buying a home and I ask the seller for a credit for thing to be done around the home. When do I recieve the credit?

Roselle Park, NJ |

I asked for a credit to fix some things that the inspector pointed out.

Attorney Answers 4

Posted

Inspection credits will appear as reductions to the amount you will pay AT CLOSING. So, if the purchase price is $100,000 and the Seller agrees to a $10,000 credit to cover all inspection issues, you would only have give the Seller $90,000 at closing (this is a simplified example to demonstrate the point as there are many other closing costs that you will pay at closing Ina addition to the actual purchase price).

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Posted

I agree with Layni S Rothbury, but have a question for you. Do you not have an attorney representing you? Seems like a question your own attorney would have been happy to answer. I hope you are not doing this without an attorney.

My answer is for general purposes only and is not not intended to establish an attorney-client relationship, nor is it advice upon which you should act or rely. But, if you really want me to tell you something upon which you can actually rely: don't eat yellow snow.

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Adam Lefkowitz

Adam Lefkowitz

Posted

Buying a home remains the single largest and most complex transaction most people will have in their entire lives. No one should undertake such a venture without the assistance of an attorney.

Posted

I agree with the other attorneys. If you are getting a mortgage, make sure your lender is okay with a seller's credit. Good luck.

DISCLAIMER: Please be advised that this post is not intended to constitute legal advice and is for informational purposes only. This posting in no way creates an attorney client relationship. You should contact an attorney to protect your interests.

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Adam Lefkowitz

Adam Lefkowitz

Posted

I think I must have been a grammar instructor in a previous life. Mr. Anderson provides good advice. You should confer with your lender. As a point of clarification, the home buyer gives a mortgage to the lender and gets a loan in exchange.

Posted

The credit needs to be confirmed in writings exchanged by both parties. This is typically done between the attorneys representing both parties - the buyer's attorney writes a letter requesting the credit in specific $$ amount, and the seller's attorney confirms his/her client's acceptance in writing. The credit is applied as a deduction of the amount due at closing, and will be reflected on the HUD-1 real estate closing form.

This answer does not constitute specific legal advice or create an attorney-client relationship between Glenn R. Reiser, Esq. or LoFaro & Reiser, LLP and the individual or company whose posts we are responding to.

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