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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?

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

Roselle Park, NJ -

Attorney Answers (4)

Layni S Rothbort

Layni S Rothbort

Real Estate Attorney - Millburn, NJ
Answered

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).

Peter J Weinman

Peter J Weinman

Real Estate Attorney - Staten Island, NY
Answered

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... more
Erik Anderson

Erik Anderson

Commercial Real Estate Attorney - Tinton Falls, NJ
Answered

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... more
Glenn R Reiser

Glenn R Reiser

Real Estate Attorney - Hackensack, NJ
Answered

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.... more

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