Thanks for reading. I have been corresponding with a Buyers Agent in regards to a carpet allowance that she is seeking for her buyer. I have stated to her and also in the contract, "Seller will give $3000 carpet allowance paid by the title company out of sellers proceeds to be funded at closing." Buyers agent wants cashiers check from seller to buyer at closing. Is this legal? As far as I know the lender will not allow this? Thanks

sounds fine to me. I've attended closings where the buyer gave a check for $40,000 to the seller for furnishings they were buying.

(by the way, it's adviCe you want, not adviSe)

As long as all parties involved (including lender) are aware of the allowance and agree to it, then it should be legal. I would let it flow through the title company. No need for seller to provide cashiers check when the title company can disburse funds.

Is this new construction? If so, can the seller get a CO without flooring already being installed?

It depends on the lender and the terms of the contract. Most lenders will only allow 3% Seller paid closing costs for a contract. The carpet allowance paid directly to the Buyer could be considered closing costs and disallowed. To avoid this issue you must pay the money out "to the Buyer's contractor of choice, to be specified on the HUD-1 at closing."

Should be just fine. As with everything, keep it all on the table so that there are no surprises. A VA loan may be one of the lenders that would have the biggest issue with it but again it should still go through.

If you are in California, you can call up a Title or Escrow Company and talk to one of the closing officers. They are charged with carrying out the instructions of the contract. Ask him or her if your wording will accomplish what you want. Make sure "carpet allowance" is not interpreted as a credit to buyer.