At times, there may be problems to be addressed or repairs to be completed which cannot be accomplished before the closing but which the buyer and seller agree to maintain current past the closing date.  In this case, the buyer’s agent will complete a legal form, which is presented at the closing and filed by the closing attorney.  Typically, a penalty amount is retained from the seller’s proceeds, which is held in a trust account, to which the buyer is entitled, should the seller default. In addition, the supporting documentation will include a date by which the issue must be resolved.  If the seller provides proof that the problem has been resolved within the timeline allotted and to the buyer’s satisfaction, the seller is entitled to a refund of the penalty funds.