11. In the event seller breaches the contract or cannot complete the sale as agreed, then buyer is entitled to receive a refund of the Due Diligence Fee and the Earnest Money Deposit. Additionally, buyer is entitled to be reimbursed for their reasonable costs actually incurred for Buyer’s Due Diligence. However, these terms are modified by the use of some addenda, such as the Short Sale Addendum. Also, be aware that refund of any Due Diligence Fee and reimbursement of costs incurred for Buyers Due Diligence must be collected directly from the seller and these sums are not held in escrow. 12. Reasonable delay in Settlement of up to 7 days without any compensation is allowed to buyers or sellers who are acting in good faith to complete the Closing. Buyers and sellers should be aware of this and make their moving and other plans with knowledge that delays do sometimes occur and are often out of the control of the other party. Either party needing a delay should notify the other party and the settlement agent (closing attorney) as soon as possible. 13. The Property must be in the same or better condition at Closing as at the time of contract. Additionally, the seller must remove all of their personal property from the Property as well as any garbage or debris prior to Closing. As a practical matter, this should be accomplished before Settlement for the usual “walk-though” inspection by buyers. 14. Closing constitutes acceptance of the Property in its then existing condition, unless other terms are agreed in writing. Buyer should be satisfied that all issues related to the terms of the contract and the condition of the property have been resolved prior to Closing. Any agreements about later actions by either party must be clear and in writing prior to Closing. Generally, mortgage lenders require that all such matters be completed prior to Closing. 15. Possession of the property is not delivered to buyer prior to a completed Closing unless otherwise agreed in writing. That means that the time of Settlement and Closing should be set so that the Closing Attorney has sufficient time to complete the Settlement, the recording of all necessary documents and the disbursement of money immediately following the Settlement. Settlements scheduled late in the day may mean that Closing is not completed until sometime the following business day, which could also involve further delay because of intervening weekends and holidays. Agreements for early possession by buyer or later possession by seller are available, but are rarely preferable, as a variety of risks can arise during such times. At Coldwell Banker Howard Perry and Walston we believe that you being well-informed about the sales contract and being a Better Buyer will make your buying experience smoother and less uncertain. We hope this information will be useful to you.
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