Question:
What happens if the Buyer threatens to holdback $20,000 from a $935,000 purchase claiming that there are scratches on the floor? These scratches existed before the showing, however he buyer did not notice them because of the furniture and the carpet
The deal is firm and the buyer did not have the inspection clause included in the Agreement of Purchase and Sale.
Can the Buyer legally holdback money ?
Answer:
No holdback whatsoever is permitted unless negotiated in the Agreement of Purchase and Sale. The Buyer’s obligation is to close (under protest) and sue afterwards for any entitlement to recovery. That’s the remedy.
Sorry, no holdback for scratches!
Brian Madigan LL.B., Broker