Better Safe Than Sorry: Similar problems have arisen when a buyer pays for a full tank of heating oil and the seller fails to have the tank filled and has moved to “parts unknown” and the buyer’s lawyer advises him that the only course of action is to take the seller to small claims court, if and when you find him, but that the time and costs may exceed the cost of the oil.
What a "buyer’s agent" should be considering, in order to protect his client, and as part of his due diligence obligation, is to insert an appropriate “Holdback clause" of 72 hours in the Agreement of Purchase and Sale, pending verification of compliance with the terms of the Agreement of Purchase and Sale and if everything is O.K. the buyer notifies his lawyer to forward the withheld funds to the seller’s lawyer.
If the seller objects to such a clause, it should certainly raise a "Red" flag to the buyer.
Important Notice: This information is provided as basic educational information by the author and is not a substitute for the advice of an expert and/or the advice of a lawyer. There is NO representation as to legality, accuracy, correctness of the herein information and the reader is strongly urged to consult a lawyer in the relevant jurisdiction to ensure accuracy before acting on this information .