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Deposit woes on shared closing day

Make sure you consider this potential shortfall in your closing budgets.

I have sold my condo and purchased a new house, both scheduled to close on the same day. As the closing day approaches, I am doing my budgeting based upon figures my lawyer has given me. I am in a bit of a quandary because I am short by almost $10,000. My lawyer says this difference can be explained by the deposit being held by my real estate agent, which exceeds the commission owing by approximately the same amount. What am I to do?

Unfortunately, when you did your numbers you probably counted on the money your purchasers put down on your condo, minus the commission. This is not an uncommon problem with people who are buying and selling homes on the same day. What typically happens is that all commission is held by the vendor’s real estate broker until the transaction has closed. In the past, I have had clients demand I obtain these funds to complete the purchase. However, this is entirely outside my sphere of influence and the broker cannot release these funds regardless of the demands I make of the broker. This means that you will have to find another source of funds to complete your purchase.


Please readers, make sure you consider this potential shortfall in your closing budgets.

 
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