Far too often Sellers in Vancouver and the Fraser Valley agree to do things that they don’t end up following through with.  In a Vancouver Real Estate transaction this could result in a Buyer being responsible for thousands of dollars in repairs or future payments if a Seller does not do what they agree to do.

A Hold Back is a good way to ensure that what a Seller agrees to in an Accepted Offer actually gets done.

Here is an example of how the hold back works.
Let’s say that at the time of the negotiations the Seller agrees to replace the garage door opener prior to the buyer taking a possession of the property.
The the time of completion arrives and the Garage door open is still not replaced.  The sellers are gone and their agent has a hard time contacting them. The buyers are upset and although they have the right to sue the sellers for not fulfilling their obligations, they do not want to push it too far since the item is only worth $300. So the buyers just exhale a few nasty words and replace the opener themselves.

Here is what should have happened...
At the time of negotiating the contract when the sellers agreed to replace the non-functioning garage door opener, the buyers should have made a note in the contract to make the Sellers agree on a $300 hold back at the completion.
The money will go into their lawyers trust account and once the buyer confirms that it is done the money will be released to the sellers. If not, then the $300 will go back to the buyers to fix the opener. This is just another example of how the experienced consultant /negotiator can reduce your stress level when buying or selling Real Estate.

Tibor