Real Estate Investor · Huntington Beach, CA · Member since 2008 · 221 posts · 9 votes
I have a seller who is offering me credit off escrow closing costs in exchange for furnace that doesn't work, etc. Why would a seller prefer to do this (instead of cash to me)? And how would the seller compensate the escrow company for the money I would not be paying them?
Thanks
Investor · Rancho Cucamonga, CA · Member since 2008 · 1k+ posts · 684 votes
14y
Hi Mark -
The reason the Seller would want the credit to go through escrow is so he allows them to handle the monetary transaction. Say he gives you cash and you don't close, or say he promises to give you cash after closing and doesn't do it... if it happens in escrow both parties are protected.
It is weird that he would be "paying the escrow fees." Normally you pay the same fees and the amount you are required to bring is just lowered by whatever amount agreed upon.
What is the exact amount and the exact terminology of your agreement?