CO – Difference between seller $5k concession and seller closing costs/fees?

Hi there,

I am in a FSBO situation where I am looking to purchase a house from my neighbor, we have agreed on a purchase price which includes the seller pay a max of $5k in closing costs. My intention is to keep cash available as I will want to do a fair amount of work to the house before I would consider it livable to my standards, and I consider a 5k loan at 3.5% to be cheap money.

I am using the Colorado state residential contract here:

I put the 5k in closing costs in 4.2, seller concession. However after review the seller/lawyer reviewed this they changed it to 15.2 Closing costs.

4.2. Seller Concession. At Closing, Seller will credit to Buyer $______________ (Seller Concession). The Seller Concession may be used for any Buyer fee, cost, charge or expenditure to the extent the amount is allowed by the Buyer’s lender and is included in the Closing Statement or Closing Disclosure, at Closing. Examples of allowable items to be paid for by the Seller Concession include, but are not limited to: Buyer’s closing costs, loan discount points, loan origination fees, prepaid items and any other fee, cost, charge, expense or expenditure. Seller Concession is in addition to any sum Seller has agreed to pay or credit Buyer elsewhere in this Contract.

Compared to:

15 CLOSING COSTS, CLOSING FEE, ASSOCIATION FEES AND TAXES. 553 15.1. Closing Costs. Buyer and Seller must pay, in Good Funds, their respective closing costs and all other items required to be paid at Closing, except as otherwise provided herein. 15.2. Closing Services Fee. The fee for real estate closing services must be paid at Closing by Buyer Seller One-Half by Buyer and One-Half by Seller Other _______________________________________. 15.3. Status Letter and Record Change Fees. Any fees incident to the issuance of Association’s statement of assessments (Status Letter) must be paid by None Buyer Seller One-Half by Buyer and One-Half by Seller. Any record change fee assessed by the Association including, but not limited to, ownership record transfer fees regardless of name or title of such fee (Association’s Record Change Fee) must be paid by None Buyer Seller One-Half by Buyer and One-Half by Seller……………

Which one of these is correctly captures what I intend? Both seem like they do the same thing but I am unsure of the difference.

Thank you in advance.

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