Can I Just Give the Buyer a Check at Closing for the Repair Allowance?
By Sharon Alters, Realtor - Homes for Sale Fleming Island FL
(Coldwell Banker Vanguard Realty - 904-673-2308)
You asked: Can I just give the buyer a check at closing for the repair allowance? The short answer is no*. Keep reading for the long one :) Any monies that change hands must be on the HUD-1 statement if there is a loan involved. It will be listed as a credit for the buyer’s closing costs rather than just a straight check to the Buyer. Banks frown on any cash going to the buyer whereby the buyer might be perceived to ‘make a profit’ from the purchase of their home. Banks want to see all the dollars that are paid from one party to the other. There have been instances where the price of the house was $XX on the HUD but the buyer paid the Seller $YY extra ‘under the table.’ There have also been instances where a Buyer bought personal property and that was paid outside of closing. Whi...
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