Can a seller's concession go towards adjustment costs at closing (ie the cost of oil left in the tank?)

Asked by Pauljcranmer, Mount Laurel Township, NJ Thu Apr 21, 2011

I have about $2000 left in my $10,000 seller's concession (above my actualy closing costs) but I'm now finding out that I may owe $1200 for oil in the basement tank. Do I need to bring a check for an additional $1200, or can I use that leftover concession. Tax adjustments will also be made at closing, with a net cost to me, and I'm wodering if this can be included as well.

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Jeanne Feeni…, Agent, Basking Ridge, NJ
Wed Apr 27, 2011
Doubtful, the seller's concession terms are negotiated and likely are for closing costs, perhaps also escrows and prepaids if you thought to put that language in there, and it is generally "up to" for specified expenses. I recently had a closing where the agreed to inspection credit had to be "expressed" as part of a the seller's concession on the hud, but it was an agreed upon negotiated inspection point between seller and buyer - so the real question is this, has the seller agreed to cover the cost of that oil? If he had then how that is expressed in the closing paperwork is something for your attorney/closer to address. If not, then it sounds like a debit on your side and a credit on the sellers.

Good luck to you,
Jeanne Feenick
Unwavering Commitment to Service
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