Seller Christmas Present/Delayed Closing Gift
If you’re a busy agent who’s been involved in lots of deals since last Summer, one of the biggest post-closing scares can be an email — like the one I received earlier this week — from a (selling) client who alerted me about an invoice they’d just gotten from Hennepin County.
The gist: even though they’d sold their home last August, Hennepin County was now billing them for a special assessment dating back to Summer.
The sigh of relief?
Once I checked my notes and records — specifically, the HUD-1 (closing worksheet) — I saw (and then recalled) that not only was the special assessment addressed at closing, but the escrow account created to fund the assessment will have a surplus, once the invoice is paid next week.
The surplus (about $700) will be refunded to the Seller just in time for Christmas.
Phew!! (and “Yeah!” for the Seller).
P.S.: Most cities require that the Buyer and Seller escrow anywhere from 150% to 200% of the estimated cost for items that survive closing.