If a title issue cannot be fully resolved before closing, the buyer's attorney may agree to proceed with a portion of your sale proceeds held in escrow until the defect is cured. The holdback amount is typically 150-200% of the estimated resolution cost to protect the buyer against unexpected expenses. You get the escrowed funds released once the issue is resolved - but this delays your access to capital and creates post-closing obligations.
This article provides general educational information only. It is not legal, tax, financial, insurance, compliance, housing, brokerage, or professional advice. Rules, tax rates, obligations, enforcement practices, and market conditions vary by property, building, contract, municipality, and jurisdiction, and they change. Sellers should consult a qualified attorney, CPA, or other appropriate professional before making decisions based on their specific situation.
From the seller playbook: Title and Lien Risk Mitigation
This is general information, not legal, tax or accounting advice. Every situation is different. Talk to a licensed attorney, accountant or tax professional before you act.
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