1,052,211
Buyer and seller can dictate the terms. As long as it's legal, you can agree to do what you want with the deposit.
-
Susie Kay
Plano, TX
-
Sheri Sperry - MCNE®
Sedona, AZ
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Michael Jacobs
Pasadena, CA
-
Tony and Suzanne Marri...
Scottsdale, AZ
-
Eve Alexander
Tampa, FL
-
Debe Maxwell, CRS
Charlotte, NC
-
Nathan Gesner
Cody, WY
4,572,283
Hi Nathan -- it has nothing to do with Calfornia(well, almost nothing) but everything to do with what is expressed in the contract...anything/everything can be changed...and as long as an agreement is reached with both principals..and legal...oops...too Californian for you?
Consult your attorney...
Or shaman, psychic adviser or...
-
Susie Kay
Plano, TX
-
Ryan Huggins - Thousan...
Thousand Oaks, CA
-
Sheri Sperry - MCNE®
Sedona, AZ
-
Ron and Alexandra Seigel
Carpinteria, CA
-
Nathan Gesner
Cody, WY
-
Susan Haughton
Alexandria, VA
-
Candice A. Donofrio
Fort Mohave, AZ
5,104,931
I have no idea... depends on the rules in your state. I have to submit any earnest monies due within a couple of days to my brokerage and then it's placed into an escrow account.
-
Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Anthony Acosta - ALLAT...
Atlanta, GA
-
Peter Testa
Danbury, CT
2,220,654
In Georgia, we close at closing attorneys office. Earnest money will have to be deposited into an escrow account with your firm or closing attorneys.
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Peter Testa
Danbury, CT
-
Anthony Acosta - ALLAT...
Atlanta, GA
5,230,113
Our Contract mandates the EMD be held in Escrow. I would confirm with the REC as to whether or not you can have it held by the Seller in your state though.
Congrats on another investment property, Nathan!
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Peter Testa
Danbury, CT
-
Anthony Acosta - ALLAT...
Atlanta, GA
1,231,853
Good suggestion from Dave Halpern
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Susie Kay
Plano, TX
-
Peter Testa
Danbury, CT
-
Debe Maxwell, CRS
Charlotte, NC
-
Nathan Gesner
Cody, WY
544,014
In this case, I would deposit it with the title company in case the transaction goes bad and you're entitled to your deposit back.
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Susie Kay
Plano, TX
-
Lyn Sims
Schaumburg, IL
-
Debe Maxwell, CRS
Charlotte, NC
-
Nathan Gesner
Cody, WY
758,035
Assuming you are referring to bank owned property, the Investor decides who holds the EDM. I am working on a bank listing now & the Title Company gets the EDM- that's what they want. If I had a choice I would give it to my Attorney before the Seller's side.
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Anthony Acosta - ALLAT...
Atlanta, GA
1,027,602
As our Broker reminds us, unless it's a statutory requirement, anything is negotiable, so in my world, that means you can do what you both agree to do vis-a-vis the EMD.
With that said, I sincerely appreciate your characterization of this guy, with one caveat: if this deal falls apart and he keeps your money, don't come back here asking what your options are to retrieve your EMD 'cuz there is nothing people love more than to say "told you so."
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Susie Kay
Plano, TX
-
Candice A. Donofrio
Fort Mohave, AZ
-
Nathan Gesner
Cody, WY
1,844,301
It should go with the attorneys or title company. Why bother doing it any other way? 3rd party
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Peter Testa
Danbury, CT
7,836,419
That is not the typical practice in our area.
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Peter Testa
Danbury, CT
846,475
Not here in FL
-
Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Anthony Acosta - ALLAT...
Atlanta, GA
3,071,489
Candice A. Donofrio nailed this one!
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
-
Candice A. Donofrio
Fort Mohave, AZ
6,393,609
Sounds like you are going without a brokerage, it would likely be to your benefit to have it in someones trust account, an attny, title co or a brokerage.
Every state is different, but I would suggest going through either a brokerage or an attny to help with the deal.
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Bob Crane
Stevens Point, WI
-
Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
809,258
I do not know about Wyoming, but EM can be released to the seller and become non-refundable in Idaho. This happens a lot with REO and New Construction, and occasionally with contingent offers or offers where the buyer wants the seller to do extensive work to the property. So unless your state has certain Earnest Money laws I would imagine you could write in that EM is to be released to the seller. In my state you would still have to be "responsible broker" and keep a ledger on what happened to it. If I were in this scenario I'd call the Real Estate Commission to make sure I was doing it all properly, documenting it the way I was supposed to, etc.
I just saw your comment under Jeff Dowler's comment. Our purchase and sale agreements say EM to be held by 1)Listing Broker 2)Selling Broker 3)Closing Agency 4)Other (with a line for explanation).
-Kasey
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Susie Kay
Plano, TX
-
Debe Maxwell, CRS
Charlotte, NC
-
Nathan Gesner
Cody, WY
644,025
Do you have to? No, BUT I would never recommend a party to the transaction holding the EMD, friend or not.
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Susie Kay
Plano, TX
-
Debe Maxwell, CRS
Charlotte, NC
-
Nathan Gesner
Cody, WY
5,049,455
I would feel safer with it being held with the Title company. What's in YOUR best interest! And how do contracts normally read in your state?
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Susie Kay
Plano, TX
-
Debe Maxwell, CRS
Charlotte, NC
-
Nathan Gesner
Cody, WY
509,449
In Texas title is involved. I guess you can always change any terms or words in the contract as long as both parties agree AND the attorney is the one writing the changes and not us, realtors. We cannot cross the contract and write something to replace it.
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Anthony Acosta - ALLAT...
Atlanta, GA
-
Susie Kay
Plano, TX
1,502,998
LOL! Pretend it's not California! Great one!
I see no reason why he couldn't hold your funds. In the olden days agents used to hold the emd check that accompanied the offer! I'd say use an escrow company, but if you don't need one then I'd just go with letting him hold it.
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
1,955,212
Candice IMO has the best answer! But more importantly, make sure your state has the same understanding. States to differ in the way they allow things to be handled.
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
5,772,575
Nathan,
I am with my California friend, Michael Jacobs A
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
4,800,082
If you're acting in your licensed capacity, I would think you should go by the state laws.
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
1,466,207
Nathan Gesner Is an EMD required in your State? If it is required, what is their minimum amout? It might be just a $1 or $10. If an EMD isn't required why bother with it at all. Since you have a mutual trust, is a good faith deposit really needed?
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
3,345,091
My first thought to to check the laws in the state. Private sales may be able to transact differently.
OUCH on the California comment ... yet they say the truth hurts
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
900,128
Check with local attorney.
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
2,684,109
Escrow money should always be held by a third party. It's just good business practice.
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Nathan Gesner
Cody, WY
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Susie Kay
Plano, TX
1,543,823
In SoCal you place it with escrow, not Title. If there is to be title insurance, I'd say yes, but Candice A. Donofrio's answer is what I suspect too.
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Susie Kay
Plano, TX
-
Candice A. Donofrio
Fort Mohave, AZ
1,239,901
2,781,173
the money has to be placed in trust or governed by agreement by both
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Nathan Gesner
Cody, WY
-
Susie Kay
Plano, TX
3,416,038
If i was buying, i would want it held with the closing company. Even no refundable deposits can be refundable if the deed is bad or something pops up. It is always better to be safe than sorry
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
5,583,278
In my state, the seller (homeowner) can hold all deposit money....
some builders insist upon holding it and once all contingencies have been satisfied, it's in writing that they can use the deposit for construction....
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
613,494
Buyers and Seller can write a contract on a napkin with any terms they want...including no earnest money deposit if they choose.
Here's the big difference:
If anyone other then a broker holds escrow and there is a dispute they can release the money to who they think deserves it. ONLY a licensed broker must notify the Real Estate commission for a decision or interplede it with the courts.
No one else has to follow any rules.
Eve
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Susie Kay
Plano, TX
-
Nathan Gesner
Cody, WY
1,622,432
We do not wire EMD to the title but to the escrow of the sellers choice( usually), and yes, it should be something ( not necessary money and not necessary 3%), anything that both principals mutually agreed upon.
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Nathan Gesner
Cody, WY
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Susie Kay
Plano, TX
1,525,616
You have a lot of good answers here. As long as it is stiuplated in the contract and you are comfortable with him holding it then go for it.
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Susie Kay
Plano, TX
-
Candice A. Donofrio
Fort Mohave, AZ
3,988,007
I have had earnest money placed with the seller and stipulated in the purchase agreement. I think a buyer and seller can have whatever agreement they want to make in regards to earnest money.
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Susie Kay
Plano, TX
-
Candice A. Donofrio
Fort Mohave, AZ
3,986,258
Not in Minnesota, it has to be in an interest bearing trust account usually placed with the lisating agents Broker.
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Susie Kay
Plano, TX
-
Debe Maxwell, CRS
Charlotte, NC
321,564
I believe you have some great answers. Using a contract, put the terms in writing & good luck!
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Nathan Gesner
Cody, WY
5,216,409
He can hold it if both parties are in agreement. Best if he uses a segregated account, but not necessary!
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Nathan Gesner
Cody, WY
390,348
W do not handle Earnest Money Deposits. The buyers should wire the money into escrow or personally deliver. Great question!
-
Nathan Gesner
Cody, WY
989,652
I'm with Candice A. Donofrio on this one
-
Candice A. Donofrio
Fort Mohave, AZ
1,725,996
I don't understand why you would not do so, but as Candice A. Donofrio wrote
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Candice A. Donofrio
Fort Mohave, AZ
1,712,676
I like a good third party and even more so dealing with friends or family.
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Nathan Gesner
Cody, WY
2,182,552
911,338
It's usually negotiable. You could always let the title company hold $1000.00 of it, and seller hold the other $4000.00.
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Susie Kay
Plano, TX
2,800
Title company, either broker or the chosen attorney.
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Susie Kay
Plano, TX
637,434
Earnest money should be just that, skin in the game. Sounds like you are getting around that. Why even call it that? Do you actually have enough in your bank to cover that check? Sounds to me like your buyer, the guy with the heart of gold, is getting duped by a licensed person. Better call your legal hot line on this one.
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Susie Kay
Plano, TX
4,434,127
4,882,355
In Texas that would be spelled out in the contract.
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Nathan Gesner
Cody, WY
4,319,419
You can place anywhere else - with mutual agreement - to best of my knowledge.
5,868,554
I believe with this scenario, it is up to the principals, but even knowing the character of the Seller, would still put the EM at the title company.
3,164,294
4,936,705