What is the usual process of selling an REO property?
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What is the usual process of selling an REO property?
I am an agent working with the buyer. I just presented an offer on REO property and the seller, which is the bank, requested that the buyer turn on the utilities for the appraisal. Is the buyer able to do that since the settlement was not set? And the seller put on the addendum that buyer will be charged $100 per diem on each calendar day, if the buyer extends the closing day. Is this a usual thing?
Asked on March 17, 2012 under Real Estate Law, Pennsylvania
Answers:
FreeAdvice Contributing Attorney / FreeAdvice Contributing Attorney
Answered 12 years ago | Contributor
There is no usual process for selling a REO property. Each property has different terms and conditions regarding the sale. The owner of the parcel needs to place the utilities in its name to be turned on. The prospective buyer does not have the right to do so since he or she is not the owner.
The $100 per day penalty for extending the close of escrow date is a term that can be freely negotiable. The penalty of $100 per day for extending close is not typical. If you have further questions on the transaction, you should consult with a real estate attorney or your broker of record.
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