If i write a check as the Earnest deposit to go with my contract. Does the title company actually cash the check right away or do they wait until closing?
my understanding is that all earnest money should be deposited into an escrow account. So for example, if you give a real estate agent an earnest money deposit, it should be deposited as soon as possible into their account..
My understanding is that the earnest check is deposited as soon as the contract is ACCEPTED. If the contract is not accepted, the company should not deposit the check.
Yes escrow is obligated to follow the instructions of the accepted offer.
However the offer can call for the deposit to be deposited at any time agreed upon by both parties and a deposit can be a promise to pay and not money at all.
There are all kinds of ways to skin this cat...
Keep in mind that escrow is also obligated to hold the deposit until both parties agree to its release, however, the remaining funds deposited by a buyer are not considered a deposit therefore not subject to both parties release requirements.
So if you have agreed to put 1000.00 in escrow I would designate 100.00 as a deposit and 900.00 as additional funds. Just in case you have to back out.
_________________
Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 12/09/2005 ]
They cash it usually within a week.
Thanks,
Nate
my understanding is that all earnest money should be deposited into an escrow account. So for example, if you give a real estate agent an earnest money deposit, it should be deposited as soon as possible into their account..
My understanding is that the earnest check is deposited as soon as the contract is ACCEPTED. If the contract is not accepted, the company should not deposit the check.
JS.
Yes escrow is obligated to follow the instructions of the accepted offer.
However the offer can call for the deposit to be deposited at any time agreed upon by both parties and a deposit can be a promise to pay and not money at all.
There are all kinds of ways to skin this cat...
Keep in mind that escrow is also obligated to hold the deposit until both parties agree to its release, however, the remaining funds deposited by a buyer are not considered a deposit therefore not subject to both parties release requirements.
So if you have agreed to put 1000.00 in escrow I would designate 100.00 as a deposit and 900.00 as additional funds. Just in case you have to back out.
_________________
Michael Quarles
"Marketing is the key to Successful Investing"[ Edited by IBuyHousesInc on Date 12/09/2005 ]