Brian, I’ve got a closing where we can’t get the repairs done in time. What do I do?

Hmmm.  I suppose it is too late to fuss about repair timing. Perhaps that wasn’t the agent’s fault  anyway (didn’t ask).

The first thing you do not do, and I get asked this quite often, is blithely have the seller write a personal check to the buyer at closing for the cost of the repairs.  And the reason is not because it is inherently illegal to do so – rather it is illegal only if it is not disclosed to, and approved by, the lender.  So, here are your options (assuming an agreement):

· Amend the contract to extend the date for closing and get the repairs done before closing.  This is really the best option, but I understand that it is not always practical

· Check with the lender to see whether the loan type and underwriting guidelines will permit a repair credit (or escrow), and if so amend the contract and show the credit (or escrow) on the HUD-1

· If a credit/escrow is not permissible, amend to remove the repairs and instead pay closing costs, etc.  But you must check with the lender to see whether the loan type and underwriting guidelines will permit this, and as always it too must be transparent and disclosed