By Lydia Blair
Let’s call this real estate horror film Mission Impossible – Saving the Sale. It’s the sequel to Mission Impossible – The Roof Needs Repair starring Surprised Seller and Upset Buyer. Also featuring Scrambling Realtor and Cautious Escrow Officer.
The scene opens with a pending sale on a property that needs a repair that the seller has agreed to do. However, the repairs cannot be completed before the closing. It could be hail damage to a roof that happens a couple of days before closing. Or wood floors that become damaged when a water pipe breaks just before closing day.
Whatever the scenario, there isn’t enough time to make the repair before closing day. In that case, the parties to the transaction may want to use an escrow agreement to close on time and allow the repairs to occur after closing.
Escrowing for repairs can be a somewhat complicated situation and the procedure often varies from title company to title company and lender to lender. Here’s how it usually works: