Fear not – the contract provides a clear and concise remedy.
If you have unexpended repair limits, then “sums equal to 125% of the costs to complete the applicable item(s) (but not in excess of applicable [repair] limits) shall be escrowed at closing.”
But what insurance do you have that the seller will cover the difference, should the estimates be too low? The contract also states that “if actual costs of required repairs…exceed applicable amounts, the seller shall pay such costs (but not in excess of [repair] limits.”
The moral of the story is, do not let an aggressive closing agent tell you they’re giving your seller a “gift” by escrowing the entire cost of the repair/replacement in order to cover undiscovered or undisclosed issues that may come to light as a result of the work yet to be conducted. The contract is clear on is face as to the parties’ rights and obligations, and should be followed accordingly.
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