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Definitions of Holdback
The Glossary of Real Estate Terms and Definitions at the Approved
Agent website defines “Holdback” as money not paid until certain
events have occurred.
http://www.approvedagent.com/h.html
The Real Estate Glossary from Panda realty defines Holdback as an
“Amount of money held back at closing by the lender until a particular
condition has been met. (..) Buyers and sellers may also have
holdbacks between them, to ensure that specific conditions of the sale
are met.”
http://www22.brinkster.com/yfleysher/gloss.asp
“Most lawyers would advise that the parties set aside a part of the
purchase price as a “holdback”. The holdback would be a predetermined
amount and would be held in trust until the matter is settled.”
http://www.cwilson.com/pubs/business/dcs5.htm
”While problems are rare, Buyers please be aware that funds cannot be
held back unless the real estate contract you have signed specifically
refers to a dollar amount for a holdback for specific circumstances.”
http://www.homescalgary.net/buyinglegal.html
When it comes to possession of the home it would be an advantage to
have a holdback as the following excerpt illustrates:
“In some areas of the country, it’s customary for the seller to retain
possession for three to five days, or even longer, after closing at no
cost. Your broker or real estate attorney should be able to advise you
of the local custom. Be aware, however, that local customs do not
always have to be followed. Also, there could be risks involved with
allowing the seller to stay on after closing if you don’t have any
holdback of funds or a written agreement on when the seller is going
to vacate the premises.”
Source: "Taking Possession" by Ilyce R. Glink
http://www.thinkglink.com/HouseBuying/hbc329.htm
In addition, often disputes arise over very minor issues such as
rubbish being left in the backyard that the seller promised to remove.
“If you wish to ensure that this is done you should specify in the
Real Estate contract that there be a hold back of funds of a specified
amount if the seller has not complied with the request. Without such a
provision specified the deal would have to go through as the lawyer
for the purchaser cannot arbitrarily hold back funds on the deal.”
Source: Atkinson Law Website
http://www.atkinsonlaw.com/common.html
Consult a Lawyer:
“The purchase of real estate represents a major transaction in one's
life. The transfer of real estate, often accompanied by a mortgage,
and the adjustment of the matters between the vendor and the purchaser
involves a complex set of procedures. The property title and tax
records must be reviewed to ensure that the purchaser does not inherit
the vendor's liabilities. Deposits, rebates, holdbacks, surveys,
appraisals, mortgage proceeds and discharges, municipal taxes and
utilities, property transfer tax must all be accurately taken care
of.”
http://www.realestateinottawacanada.com/third.htm
Search Criteria:
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I hope you find this helpful.
Best Regards,
Bobbie7-ga |
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