Mountain Broker Podcast

The "Side Deal" Trap: Navigating Lender Limits on Seller Credits

Steve Keefe Season 1 Episode 31

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0:00 | 10:03

This podcast analyzes a specific real estate scenario where a lender allows only $10,000 of an agreed-upon $15,000 seller credit, leaving a $5,000 gap. Based on Paragraph 5E of the California Residential Purchase Agreement, listeners will learn why this difference is typically forfeited rather than automatically adjusted. The discussion highlights why attempting to bridge this gap with a "side deal" like a gift card is a major violation of disclosure requirements. Finally, the overview outlines the contractually approved solution: executing a separate written agreement to lower the purchase price