Can't we have the Seller write a check to the vendor?

Real Estate Agent with Atlanta Communities 303302

There have been some situations in the past where a repair or job at a home being sold will not be completed before the closing date. Years ago, we would have the seller write a check to the vendor of the buyer's choice for the work to be done. This check would be given to the buyer at closing. In theory, the buyer would then give the check to the vendor doing the work once the job was complete.

We can't do this anymore. The problem was that the buyer would get Uncle Manny to do the work and they would split the proceeds of the check. This was a definite no-no for the lender. It constituted Mortgage Fraud.

Before we did this, big dollar gift cards were given to the buyer from the seller. Gift cards from Lowe's and Home Depot were very popular. However, the same shenanigans began happening and this was shut down as well .

At one point we were able to have money left with the closing attorney in an escrow account. They would send out the money once the job was approved by the buyer. They no longer want the liability so this has all but ceased as well.

So, the moral to this story is to get any work needed by the seller done before closing. If this is not possible, reduce the sales price in accordance with the value of the repair.

Posted by

Peter den Boer, Associate Broker, Realtor

Atlanta Communities Real estate Brokerage


Ph. 770.713.1545


I write about daily life as a Realtor in the Towne Lake Community in Woodstock Georgia.


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Linda Guess
Keller Williams Tri-Lakes Branson, MO - Branson, MO
Branson area real estate sales.

Thank you for this information.  I haven't had this come up lately, but I am sure it will.

Dec 28, 2015 09:57 PM #1
Richie Alan Naggar
people first...then business Ran Right Realty - Riverside, CA
agent & author

There are ways to proceed that are better than other ways. This be one of them

Dec 28, 2015 09:59 PM #2
Roger D. Mucci
Shaken...with a Twist 216.633.2092 - Euclid, OH
Lets shake things up at your home today!

Sounds to me like those were some shifty people in those deals.

Dec 28, 2015 10:04 PM #3
Belinda Spillman
Aspen Lane Real Estate Colorful Colorado - Aurora, CO
Colorado Living!

It is very frustrating these days.  I used to escrow repair funds all the time but title companies want nothing to do with that these days.  

Dec 29, 2015 01:40 AM #4
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Peter den Boer

MBA,GRI, Associate Broker, Realtor
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