Remove Value Choice into the Concession Agreement

Aug 6th, 2022
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How to Remove Value Choice into the Concession Agreement

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hey this is Kyle with modern mortgage and we are talking about seller concessions sometimes this is called seller credit sometimes its called seller concessions but really it means the same thing so what is seller concessions seller concessions is essentially where the seller is going to pay a portion of your closing costs now lets note that I said portion here and not all of the closing costs so what happens is the seller will pay a percentage of the purchase price to go towards the costs that are required for you to close on a property so what are some of these costs we have things like the appraisal we have title fees taxes insurance recording fees everything associated with you closing on a property and acquiring a loan is going to be the closing cost so the seller will be able to give you a credit if you can negotiate it this way towards those closing costs so something to keep in mind here is that closing costs will never be able to go towards your down payment okay your down p

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The major advantage of a concession is that it allows certain public assets, for which private ownership is economically inefficient and politically not possible, to be maintained and operated efficiently by private players.
The conditions in a concession agreement can include payment of fees, percentage of revenue made or being liable for the cost of maintaining the facility.
Cons: Highly complex to implement and administer. May have underlying fiscal costs to the government. Negotiation between parties and finally making a project deal may require long time.
Concession contracts are used by public authorities to deliver services or construct infrastructure. Concessions involve a contractual arrangement between a public authority and an economic operator (the concession holder).
Concession contracts are used by public authorities to deliver services or construct infrastructure. Concessions involve a contractual arrangement between a public authority and an economic operator (the concession holder).
Advantages of a concession agreement It spreads the risk involved for both parties and no single partys share is at risk. It involves a high level of private investment which will result in better enforcement and implementation of the projects involved.
A grant extended by a government to permit a company to explore for and produce oil, gas or mineral resources within a strictly defined geographic area, typically beneath government-owned lands or lands in which the government owns the rights to produce oil, gas or minerals.
The conditions in a concession agreement can include payment of fees, percentage of revenue made or being liable for the cost of maintaining the facility.

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