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Old 12-17-2007, 12:16 PM
 
Location: Richmond, VA
2,301 posts, read 1,021,915 times
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our realtor just deposited our deposit check for our new home. I thought this didn't happen until closing.? We put an offer in on a home before this one and they didn't deposit that one and good thing as we passed on it after the home inspection. SHouldn't she, at least, have waited until the home inspection was completed on this new home?
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Old 12-17-2007, 12:20 PM
 
69,370 posts, read 51,711,137 times
Reputation: 9357
Quote:
Originally Posted by twinmma View Post
our realtor just deposited our deposit check for our new home. I thought this didn't happen until closing.? We put an offer in on a home before this one and they didn't deposit that one and good thing as we passed on it after the home inspection. SHouldn't she, at least, have waited until the home inspection was completed on this new home?
My understanding (and I'm no realtor so expect others to correct me if I'm wrong) is that the deposit gets cashed when there is an offer and acceptance on a property.
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Old 12-17-2007, 12:26 PM
 
Location: Las Vegas, NV
403 posts, read 1,039,511 times
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There may be confusion between the "Earnest Money" (sometimes called "Good Faith Money") and the "Deposit" money.

The former is generally deposited into the escrow account upon acceptance of the Agreement. The latter is usually due at closing.

Procedures can vary, but will be spelled out in your written contract.
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Old 12-17-2007, 12:31 PM
 
Location: Raleigh, NC
11,690 posts, read 26,664,547 times
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In NC, once you have a CONTRACT, the listing agent has 48 hours to deposit the earnest money deposit. However, I do try to let my buyers know this and remind them again right before I hand over that check to the listing agent.

Vicki
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Old 12-17-2007, 12:33 PM
 
Location: Tucson, AZ
529 posts, read 2,047,439 times
Reputation: 326
Quote:
Originally Posted by Eric Young View Post
There may be confusion between the "Earnest Money" (sometimes called "Good Faith Money") and the "Deposit" money.

The former is generally deposited into the escrow account upon acceptance of the Agreement. The latter is usually due at closing.

Procedures can vary, but will be spelled out in your written contract.
Mostly correct here, but I would be careful about the verbage. The "earnest money", "earnest deposit", or "good faith money" are all the same thing. It is the money you are sending in along with your purchase offer that is deposited into an escrow account when escrow is opened, money that shows the seller you are making the offer in "good faith".

The "down payment" is the secondary part of the transaction and is the money you bring to the table at closing as your down payment on the home.

Your Realtor should have explained these differences to you just for this very reason. The funds will remain in escrow until closing or, if the deal falls through, the purchase contract is voided, at which time the escrow company would cut you a check for the amount deposited.

It is normal (actually required by law) for the earnest deposit to be cashed/retained immediately after contract acceptance unless there was a stipulation in the contract about not depositing the earnest money until after inspections.
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Old 12-17-2007, 12:39 PM
Status: "If the phone doesn't ring, it's me" (set 26 days ago)
 
Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
6,951 posts, read 17,979,926 times
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Quote:
Originally Posted by pghquest View Post
My understanding (and I'm no realtor so expect others to correct me if I'm wrong) is that the deposit gets cashed when there is an offer and acceptance on a property.
Your dead on in the state of CA
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Old 12-17-2007, 12:40 PM
 
Location: Richmond, VA
2,301 posts, read 1,021,915 times
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gotcha-thanks. i think i understand. i just don't get why they didn't deposit the check on the first home we made an offer on and they did on the second...maybe b/c the first was a short sale...
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Old 12-17-2007, 12:45 PM
 
Location: Nine Mile Falls/Spokane, WA
972 posts, read 4,116,968 times
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Quote:
Originally Posted by twinmma View Post
gotcha-thanks. i think i understand. i just don't get why they didn't deposit the check on the first home we made an offer on and they did on the second...maybe b/c the first was a short sale...
It's only upon mutual acceptance of the offer - not just when you make an offer. Did your first offer get accepted?
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Old 12-17-2007, 12:48 PM
 
Location: Richmond, VA
2,301 posts, read 1,021,915 times
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wendy-okay. NOW I GET IT. The offer was accepted but we ended up not ratifying contract until after home inspection due to short sale and then we never did ratify. Completely forgot about that!
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Old 12-17-2007, 12:54 PM
 
Location: Maryland - Howard County
195 posts, read 645,858 times
Reputation: 60
It may vary for every state, but in MD, you submit an offer with an Earnest Money Deposit (which shows GOOD FAITH). IF the offer is ratified (Buyer and Seller have signed off on all of the nitty gritty), then the contract is turned into the Main Office WITH the Earnest Money Deposit (The check you submitted with your offer). This is supposed to be done within 24 hours of ratification.
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