Personally, I prefer being able to access my money without penalties since it’s mine.

Prepayment penalties- usually 1-5 year terms.

You can include a steep penalty per day that you charge if they fail to move out by the agreed-upon date or hold more money in escrow if you don’t trust them to move out. 

If I were you, I would also want a 3/2/1 prepayment penalty structure, if you can get it.

Prepayment penalties- usually 1-5 year terms.

I'm currently in the process of closing my first primary residence deal in NYC, and I would like to ask for a piece of advice to the community.The current tenant of the Seller failed to move out by the closing date and the Seller decided to take a legal vacating process.Background- The current tenant of the Seller failed to move out by the closing date and I heard the tenant is avoiding direct communications with the Seller- Not sure from my end if the tenant is willing to moving out but struggling, or maliciously squatting- I have a vacancy contingency in the contract, thus I can back out at my discretion due to this issue, but currently there is no other properties that I want to move on to due to the market condition- The Seller is trying to take a legal action but it will at least take 3 months or longer, no promise to succeedAdvice to ask- My attorney could not negotiate to ask for a penalty for this delay because the penalty for delay was not included in the contract.

Provides “proof” of funds but the account is a corporate retirement plan that the buyer can not access without quitting his job or paying huge taxes, penalties and fees 6.

I have seen many tax returns where the local taxes were filed incorrectly in the past (or not at all) which caused undue penalties/interest for the taxpayer.

If there's a hole, it may be a red flag.b) sensitivity analysis: I examine all the assumptions, and make sure I can live with the worst case scenarios.c) "Stall and see": if they are getting money over multiple years, and there is no penalty for investing later, I would usually wait so I get some real performance data, versus having to look at theoretical pro forma information.d) Recession stress test: I will not invest in anything, until I subject it to recession level stress and see if I can live with the result.

The distribution had to be reported on this tax return, and taxes and penalties had to be paid.