Hold Back

Sometimes when buyers take possession of their properties, they may find various issues (e.g. non-functioning appliances, leaky toilets, or dirty carpet, etc.) Many buyers have the misconception that if they find any issues on the date of possession, their lawyer can hold back money from the transaction to deal with these problems. The fact is the buyer’s lawyer does not have any authority to hold back money without a prior written agreement. If the buyer and seller cannot come to an agreement about the issues, the buyer may consider taking the matter to the small claims court.

Take “dirty” carpet as an example, there isn’t a standard for “clean” carpet. If the buyer is concerned about a “dirty” carpet on the date of possession, the buyer can add an additional term into the contract to have the carpet professionally cleaned before the date of possession. And require the seller to provide a proof of payment for the professional cleaning service.

You may contact me for further legal advice.

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Note: All postings in this blog are for information only, please consult a lawyer for proper legal advice.

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