Question
Agent is trying to tell me this is one of their standard clauses and is for any issues with appliances or repairs.
“The seller hereby agrees to give the buyer credit of $10,000 (Ten Thousand Dollars) towards the property. Such credit to be applied to the Statement of Adjustments in favor of the buyer.”
Answer:
This is a simple request for a $10,000.00 reduction in price. There’s nothing more to it. This has nothing to do with appliances, or it would say so, in the clause. Where is the word “appliances”?
Appliance repair would be dealt with by way of a holdback, repair and payment.
Twenty years ago, these types of clauses often allowed a Buyer to get more money from their Lender because they didn’t read the fine print, or it wasn’t sent to them. Lenders certainly do today. Obviously, there is a risk of mortgage fraud and they need to protect against that.
This type of clause appears in other jurisdictions (United States) where the Vendor is trying to pay for the Buyer’s closing costs. Here, we just reduce the price for transparency purposes.
Brian Madigan LL.B., Broker