Practical/Impractical Request by Seller?

[Kenneth C.]

BP Community,

I'm looking to get some feedback on what I perceive to be an impractical request, and may put me at risk of losing a significant amount of capital. So here's the scenario...An AOS was signed by all parties and slated to go to settlement in several weeks (Dec. 22nd). After doing my due diligence and conferring with my attorney, it was in my best interest to switch to a commercial loan in order to accomplish my goal of purchasing the property and placing it into my LLC without incurring undue expenses (e.g. Transfer Tax 4.1%), and potentially triggering the "due on sale" clause in the mortgage at a later date should the lender find out.

The Seller is willing to make this adjustment, but they would like to include a contingency clause that I would be responsible for reimbursing the cost incurred for the agreed upon repairs if we are unable to close on the new agreed upon date Jan. 15, 2018. It's really a matter of administrative work that must be done by my lender and doesn't have any bearing on my qualification for a loan.

Given the above scenario, is what the seller asking for practical? I would like to share my opinion on why I perceive it to be impractical, but I'd first like to hear from your objective point of view.

Thanks.