What's a hold back you ask? I had a client who encountered a frustrating issue. It was with their new home's furnace.
On a revisit, the unit was making an AWEFUL noise! We advised the realtor for the seller.
The Seller has an obligation to have all fixtures and chattels in good working order on completion. This was NOT in good working order!
In this case, the seller fixed the problem. Their realtor confirmed that the issue was fixed. We were ready to close. Or so we thought!
On the day of closing, my clients discovered another issue with the furnace. Had the seller actually had someone fix it properly the first time, they would have found this secondary issue.
This is where the lawyer comes in.
I had urged these clients to ask for a holdback with their lawyer for closing. Something they didn't end up doing.
They ended up having to fix the furnace at their own cost. And the time involved in small claims court or other legal fees created MORE of a problem for these buyers.
Moral of the story: Your lawyer is a vital advocate. They can protect your interests in real estate transactions as well as your realtor.
A HOLDBACK is an important tool that can be used to protect your investment prior to closing if you feel there is a need for it.
Once closing happens, there's very little that your realtor can do with issues like this.
Don't ever hesitate to lean on your lawyer's expertise!
- Justin
