Escrow & Title

A Connecticut property closing is delayed because the seller cannot produce a certificate of occupancy (CO) for a recent addition. The typical resolution is:

AClose without the CO and let the buyer deal with it later
BThe seller must obtain the CO or the parties must negotiate an escrow holdback or price reduction to allow closing while the CO is obtained✓ Correct
CThe title insurance company issues a CO waiver
DThe buyer's lender waives the requirement

Explanation

A missing certificate of occupancy for improvements is a title/closing issue. Options include: (1) seller obtains the CO before closing, (2) parties agree to a price adjustment to compensate the buyer, or (3) an escrow holdback where funds are held until the CO is obtained post-closing.

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