How long should the retention
period be when selling a rent roll?
Naturally the vendor will
want shortest time and the lowest amount and the purchaser will want the
longest time and the highest
amount. So therefore what is reasonable?
I am suggesting that an
amount of 10-15% of the purchaser price to be held in Trust as the retention
sum for a period of up to and no more than 6 months. In most of the transaction
that have been negotiated, the retention period has been 4 months.
The interest on the retained
amount shall be divided between vendor and purchaser.
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