I am buying a home in California and because of some significant
repairs and damage, I will be getting $30k credited back from Seller
at closing.
It is stipulated that these funds are given to a third party,
preferably a contractor. I understand the reasoning for this, but I'd
like to get all of that money now, so that I may manage it as I see
fit. I'd like to access the funds to do repair over the next year or
2.
Some have advised to designate a friend the "third party" and then
they could simply give me the money. I would think there would be tax
implications in a transaction like that.  Is this something that
happens with any great frequency in real estate transactions?

Have you financed the purchase?

Yes , I am am removing contingencies and moving toward closing.

Then maybe your finance company could collect the funds and offset
your interest accordingly.

Like I stated in my question, I'm hoping to manage these funds,
perhaps invest them, to use to repair problems as they present
themselves.

I feel that paying on interest is of less importance than managing
that amount of money on my own.

If you are not owed the money until closing, you cannot have it before
then. What if you don't close?

"If you are not owed the money until closing, you cannot have it before
then. What if you don't close?" - 

- thanks for your "help", I realise I'm not owed the money until
closing... I'm trying to figure out what's going to happen at that
point with the money...try reading the question... yes my question
assumes that I am closing... thanks for you 2 cents.

Let me rephrase my response.

The money isn't yours. You have no right to it. The situation is not
much different from someone who "knows" they will be getting a tax
refund in April but it is still October (the first person to mention
form 4466 gets a poke in the ribs).

You cannot receive the money from the end of the contract because
there has been no consideration. You must give something up for a
contract to be valid and you haven't given anything up... yet.

If you want $30K now, you can ask the seller to loan it to you. (S)He
will likely want interest and collateral other than the house you are
buying... because you don't own that house.

I doubt a sane real estate attorney would allow his or her client to
give the funds in question to anyone except a bank to hold in trust.
There is nothing-- not one thing-- to enforce your completing the
closing and absconding with the money.

Mark - I really appreciate your input but you are not at all
addressing my question.
I am not trying to "get money now".
My question pretty clearly asks: what will hapen AFTER CLOSING with
credited money that must got to a third party and how hard is it to
have this money come to me instead of to a contractor.

Please understand I'm speaking about once we close, which I'm positive will happen.

After the close...


Thanks