Walk-Through, Possession, Default & Mediation
Contract — Pages 6-7: Walk-Through, Possession & Default
Mandatory buyer walk-through, the mediation clause for EMD disputes, and possession at close.
Section 14 — WALK-THROUGH INSPECTION OF PROPERTY: The Buyer is entitled to a walk-through of the Property within 3 calendar days prior to COE to ensure the Property and all major systems, appliances, heating/cooling, plumbing, and electrical fixtures are operational.
SG Requirement: SG requires a signed Walk-Through for any closed transaction. Period. No exceptions.
The buyer (or their rep) must personally verify the property condition before close. The agent doing it on their behalf creates massive E&O liability if something is missed.
ASSIGNMENT, CANCELLATION, DEFAULT & MEDIATION: What happens when something goes wrong with the deal.
Assignment of this Agreement — Unless otherwise stated, this Agreement cannot be transferred to a third party. The buyer who signs is the buyer who closes.
Cancellation of Agreement — A fully-executed Cancellation is required for Title/Escrow to release EMD.
Brokers and agents can submit documents but cannot speak at mediation hearings. Set this expectation EARLY — your buyer needs to know you can’t be their advocate in front of the mediator. Your job is to document the deal thoroughly so the paper trail speaks for them.
Section 15 — DELIVERY OF POSSESSION: Seller delivers the Property along with all keys, alarm codes, garage door openers, parking permits, and gate transponders upon COE.
Possession — The Buyer takes possession at close unless a leaseback or tenant arrangement is negotiated AND in writing.
If the Seller does NOT vacate by COE, the Seller is considered a trespasser. Any personal property left after the date in this section is considered abandoned.
Possession at close is the default. Anything else (leaseback, tenant occupancy) must be negotiated AND in writing — verbal agreements about move-out date have killed countless deals. “Broom-clean” is a contract term of art; without specifying, sellers leave stuff and buyers fight over what’s reasonable.