The state Realtor association has a fine legal hotline, whose advice I bounce off of the advice from the excellent Prepaid Legal attorneys.Sharon gives outstanding advice on this topic.

One of the contingencies is that I agree to pay up to 3.5% in closing costs and prepaid items.

If the rental agreement is terminated under this subsection (g), the landlord shall return all security and all prepaid rent in accordance with Section 5-12-080(d).

No, these are actual costs not escrow prepaids (not escrowing).

Hi Account Closed - the closing costs amount seems a little high to me (even if that includes prepaids) if this is a conventional loan.

I always let people pay with zelle and other ways but with the upcoming rules on 1099k reporting by third party vendors like zelle and apartments.com how do you manage the pre-paids? 

@Stephanie GarciaDelayed Financing ExceptionA cash-out refinance within six (6) months of a purchase transaction when no financing was obtained for the purchase transaction are allowed under the following parameters: The new loan amount is not more than the actual documented amount of the borrower’s initial investment in purchasing the property, plus the financing of closing costs, prepaid fees, and points (subject to the maximum LTV). 1.

Should list your county and state the home is in to get better directed answers regarding the handling of the SD but yes, the SD does have to be held in a sperate account along with any prepaid items.  

They changed trash billing in my area last fall to be prepaid a flat rate yearly and it is added to your property tax bill.

Your lender may require more. 5% above your down payment and pre-paids/ closing costs.