I am dealing with a relocation company. They offered the buyer 5k credit for repairs and now want him to sign a hold harmless agreement. Is it normal?

Asked by Amla, Thu Sep 23, 2010

Buyer found some problems during the inspections and asked for 5k credit and seller ( relo company ) offered 5k credit but want the buyer to sign hold harmless agreement. Is that common practice? Any word of caution? Thanks so much for your help.

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7
Judi Monday,…, Agent, Green Valley, AZ
Sun Dec 22, 2013
Unfortunately it is very common and definitely may not be in the Buyers best interest. Be sure your Buyers understand the ramifications of what they are signing.
0 votes
Dorene Slavi…, Agent, Torrance, CA
Sat Dec 21, 2013
Unfortunately, yes.
I was working with a client once and negotiating to purchase such a property with a clause like that, but our company lawyer gave it the "thumbs down". We went on to purchase another property because of the terms of that contract.
0 votes
Elizabeth Sa…, , Fort Collins, CO
Thu Sep 23, 2010
The seller is saying to the buyer, "fine I'll give you $5K for you to fix the problems. I won't fix them myself because I don't want to be responsible for any incidental damages nor do I want to guarantee the work into perpetuity". So, I've seen this practice to be a common practice. Hope this helps.

Elle Salinas Sorgen
310-927-0916
0 votes
Shel-lee Dav…, Agent, Rolling Hills Estates, CA
Thu Sep 23, 2010
Amla:

As others have said, this is very common. Remember, the relo company is a middle man. They often request a hold harmless even when they are NOT giving a repair credit. They have never lived in the property and cannot make any representations about the condition. And, the don't want the post-sale liability that an owner would be subject to in the case of non-disclosure.

Make sure your client or their attorney looks the document over so they feel comfortable with what they are signing. You might want to put that recommendation in writing and have them sign. If you tell them that these agreements are pretty standard, you need to also let them know that each one is different and they have to feel comfortable with the rights they are giving up. Don't place yourself in a position of telling them to sign because they are standard. Hope this helps. Dare to Dream.

Shel-lee Davis, QSC®
Certified Distressed Property Expert – CDPE®
Short Sale & Foreclosure Resource – SFR®
Certified HAFA Specialist – CHS®
Your Real Estate Consultant for Life
RE/MAX Palos Verdes Realty
http://shel-lee.listingbook.com
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Thu Sep 23, 2010
I'd say this is common. I do a good bit of relo work and in my experience, the relo company will usually ask for such an agreement to be signed.

Best,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
0 votes
Jo Rossley, , Los Angeles County, CA
Thu Sep 23, 2010
Yes, this is very typical. Once the credit is given, they want a "hold harmless", especially because they know nothing about the property (not the actual seller).
0 votes
Larry Story, Agent, Greensboro, NC
Thu Sep 23, 2010
Amia,
Yes basically just like a bank foreclosure or any other corporate owned home. They have never lived there so they do not claim to have any information about the home.

Hope this helps,
Web Reference:  http://www.storybookhomes.ws
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