Yes. It is not unusual for a Seller to pay a portion of a Buyer's closing costs. We see it much more often in residential transactions where the buyer can qualify for a mortgage but doesn't have enough cash on hand to pay for their down payment plus the closing costs; therefore, we are able to "finance" a portion of these costs with a Seller credit on the HUD. In commercial transactions, it is less common because the buyers are usually more well-funded. It does make sense in cases where the Seller chooses the closing agent, because the costs associated with closing a transaction can then be the responsibility of the person who is choosing that escrow vendor. At the end of the day, it's all part of the negotiation process and will simply affect the Net purchase price.
Sep 20, 2011