Dear Listing agents:
Can one of you please explain to me why it is necessary to have the buyer bring the earnest money deposit to you PRIOR to placing the offer? Is this a way to tie up the buyer's money, with a strong probility that their offer will not be accepted by the seller in the first place and this can delay them from being able to accept another offer and have their earnest money handy to send in to escrow and get the transaction moving on something their offer was accepted???
And will this catch on with Short Sales later on?
Is this fair to buyers that don't even know if their offer is going to be accepted?
Please advise.
Signed concerned agent.
Rosemary Brooks
Patrick Williams & Associates
Mother and Daughter Realty Team
PH: 866-543-0461
FAX: 866-815-1649
EMAIL: info@motheranddaughterrealtyteam.net
WEBSITE: www.motheranddaughterrealtyteam.com
This is a first for me...
I dont deposit the buyers EMD until after i have a ratified contract between the parties. I send a copy of the cashiers check/money order.
John, I know. I have ran into several listings with that comment in agent confidential remarks. I didn't know it was legal.
Robert, this is how I do it too. My buyers have had to ignore a few listings because of this requirement! No one wants to tie up their money on something they may not get!
On the otherside I have an open escrow for about 30 days where the buyer never deposited their earnest money to escrow. Now we have to cancel escrow when it should of never been opened. Maybe a comprimise would be the solution.
Julie - I make a note to myself to check on the deposit and if it is not there -- advise that selling agent that we are out of contract. That usually works and we either get that deposit or we move to get it cancelled and move on
Hi Rosemary,
Maybe this "requirement" is coming from the listing agent and not the lender? I don't do this on my listings(REO) and none of the companies I've worked for require it. Maybe the agent was burned before and this is how he is trying to protect himself.
I generally get an offer and submit it to the lender with a copy of the EMD and at this stage it is usually a personal check. The first counter always clarifies that EMD will be in escrow within three days and it will be cash or cashier's check.
Rudy - exactly! This is why I was a bit surprised to see those kind of instructions on the listing. Didn't know you could do it like that! And why???