Should I close on time or push it back?

[Craig H.]

I am set to close on a 4 unit building on 9/22. As part of the contract the current owner had a list of items that needed to be done prior to closing (i.e. updating breakers, cleaning out basement, removing car w/ flat tire from driveway, cutting down three trees) all of which were done, but the trees. The owner of the building is a linesman and travels to areas affected by natural disasters to restore power etc. So he is headed down to Florida right now.  We're located in Cincinnati. He is not sure if he will have the three trees cut down before the 22nd.  So would you push back the closing till the trees are cut down? Or would you still close on the 22nd, but have a document signed stating the owner has x number of days after closing to remove trees, any damage to property would be paid by them, and $12,000 would be held in escrow for this. If trees aren't removed in x number of days I can do the work and pay for it out of these funds. What do you all think? Thanks for any feedback!

[Jeff Stephens]

Craig--

One question: is this a traditional transaction with real estate agents involved? I just ask because if so, you have them, their companies, licenses and insurance to help make sure this gets followed through on by the seller; if not, and you're just buying directly from the seller with no agents, you're obviously more on your own to enforce.

Overall, I like your idea of holding the $12k in escrow (assuming that's a reasonable cost for this tree removal), so that the seller doesn't get those proceeds until he performs.  If there were more remaining unfinished items than just this on the repair addendum, I'd probably lean toward pushing closing back.  But given that it's just the trees, I think your hold-back plan is a good one.

That's my two cents...good luck!

JWS