Seller Breaks the P&S Contract on Closing Day

[Chan K.]

Hi BiggerPockets,

If seller breaks the P&S contract on the closing day, will the seller be responsible for all the closing fee, inspection fee and appraisal?

I know by law they have to give back the deposits.

Usually, does the buyer or seller hold the deposits and escrow?

Thanks

[Steve Babiak]

Originally posted by @Chan K.:

The seller did not fix everything he supposed to during my walk through as required by the P&S addendum. I am still attending the closing tomorrow, and I have my agent drafted up a contract saying that the seller will fix at his expense after closing.

Make sure that your new addendum indicates that a sum of money (what it would cost you if you have to hire somebody to complete the repairs) is to be held in escrow pending satisfactory completion of the repairs. Set a completion date too, so that your seller forfeits the money in escrow for you to get the repairs done.