Unless it is stipulated somewhere in your contract that you are giving a $20K concession to the buyer, the settlement company won’t cut the buyer a check.
If your real estate agent and the mortgage broker want you to rebate a portion of the purchase price outside of closing, then you have a private side agreement. If this agreement is not disclosed to the lender, you may be facilitating mortgage fraud.
Better to get every element of the transaction in the written contract in the first place.
I am new at this so bear this with me. My tenant wants to buy my property but he wants some cash back at closing. He is working with a mortgage broker who had some realtor type in an offer. It is a standard realtor contract with a sales price of 220,000 even though we agreed on 200,000 price. The contract does not mention anything about him getting cash at closing so one might assume I will get all of 220,000.
What do I need to put in the contract so that I make sure that I get my 200,000 and he gets his 20,000. In my talking to the mortgage broker, she said that they will directly cut him a check for 20,000 from the closing.