Seeking clarity: My Florida home is listed at $709K. I received an LOI from a firm offering to cover commissions and closing costs while retaining my mortgage on record. Who bears the risk if the buyer defaults?
Hey Leo, this situation is really interesting. I wonder if the buyer’s default risk might be more on them since they’re bidding with added benefits. How do you feel about balancing that risk? Anyone else have thoughts on negotiating these terms?
Based on similar situations I’ve encountered in the real estate field, the buyer typically shoulders the risk of default, especially when they provide incentives like covering commissions or closing costs. However, this is not automatically fixed; it depends on how the LOI or subsequent purchase contract is drafted. A detailed contract might have provisions that could inadvertently transfer some risk back to you. Given that each agreement is unique, consulting a specialized real estate attorney to review these terms can help ensure there are no hidden liabilities on your side.
hey leo, buyr usually gets the risk. details in the contract may shift stuff unexpectedly so a legal check is wise. good luck!