Escrow & Title
In Minnesota, a 'holdback' at closing is used when:
AThe buyer cannot qualify for the full loan amount
BAgreed-upon repairs have not been completed and funds are held in escrow until completion✓ Correct
CThe seller refuses to vacate the property
DThe title company needs extra time to clear a title issue
Explanation
A holdback is an amount withheld from the seller's proceeds at closing and held in escrow until agreed-upon repairs or conditions are met. For example, if a roof repair was required but not completed before closing, proceeds may be held back until the repair is done and verified.
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