I wanted to bring to your attention regarding the new Sewer Lateral Addenda that has recently been updated in several east bay cities.
If the buyer/seller agrees to complete the inspection and any repairs after close, then most of the cities now require a deposit be placed into escrow prior to close. This can be quite expensive (around $4500) and is usually refunded when a certification is presented to the city within 180 days of close.
Some cities offer an option of bypassing this if there is a signed contract agreement with a plumber to commence work after close.
Others require the buyer/seller to file paperwork with the city such as an extension certificate prior to close of escrow.
It’s a good idea to notify your buyers and sellers of this new cost and negotiate appropriately. Buyers could run into problems with this if they don’t have $4500 cash to deposit (if they are to pay after close), or their lender won’t allow them to pay for it!
Read your East Bay Addenda carefully BEFORE negotiating these repairs.
As always, EscrowCood.com is committed to providing you information that will help your transactions close successfully!