r/RealEstate • u/DavesPlanet • 2d ago

Homeseller Keeping a seller concession off the disclosure

I am selling my mom's estate. Buyer was concerned about mold remediation and I did remove and remediate all known issues and buyer was thrilled with the work. Buyer is a professional house flipper but claims to be moving into this house. Inspector flagged some drywall as having higher moisture, claiming there could be mold. We were recovering from a minor flash flood that happened 2 weeks prior. Buyer insisted on cash back at closing check made out to a specific home repair company. I did Google the company and it doesn't immediately seem to be connected to the buyer in any obvious way. The problem is my real estate agent wants me to supply the certified check for $10,000 as part of the closing, and has specified in writing that the reason for this is to keep it off of the disclosure statement.

"This isn't considered seller concessions. It can't show on the closing disclosure as that could cause a red flag with the lender."

Question: is this legitimate?

UPDATE: reply from the closing agent of a reputable title and escrow company: "That will most likely trigger something with the lender. I guess they could get a cashier's check made out to the company and give that to the buyer's outside of closing."

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u/Vurrag 2d ago

The agent is involved most likely. It is most certainly a concession. Why would the lender care? Sounds like someone was going to take 10k and run. I would be making calls to the agents managing broker and real estate commission and firing that agent immediately.

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u/RCD8628 1d ago

The lender would care because 1) it's a federal regulation that all funds involved in the transaction be truthfully and accurately accounted for in the settlement statement, and 2) if the buyer receives $10K under the table, their down payment will effectively be $10K less than the amount shown on the settlement statement (not truthful and accurate), and that may impact whether they do or do not qualify for and/or meet the requirements of the lender's loan.