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This is about purchase in Nevada... I was going to make an offer and agent asked for the earnest money check to be held by him before he submits an offer.
When I made offers before in other places (they weren't accepted), they only asked for the copy of the earnest money check... the thing is that I don't have a check book and in my case it will be the hard money: my bank's cashier's check. I'm not comfortable giving away large amount of hard money before my offer is accepted (doubt it'll be accepted as I'm offering below what's asked).
Is it a normal thing to ask for hard money in this case versus check copy? Huh, a copy should suffice before the offer is accepted... I decided I won't make an offer if they don't let me to present just a copy of the check at first, until it's accepted actually... just scares me. Do you know anything about this matter?
It may be different in some jurisdictions of the country, but, I wouldn't give any money or copy of any check to anyone, unless there was a signed purchase agreement/contract with an offer reflecting the earnest money deposit.
He said there'd be some kind of paperwork, like you say... but since I have trouble understanding legalese and small print stuff, I'm not comfortable giving actual cashiers check. I called another agent in the same county and asked what's needed for offers... the other agent said that only a copy of the check is needed and the actual check is given and deposited only once the offer is accepted.
It's not that I don't trust the agent... but the cashier's check is like cash almost--it can get lost or end up in the wrong hands--then you can't just easily cancel it like regular check. I think I rather be safe than sorry... Plus, I don't live in the town where I'm trying to make an offer, it's hours of driving from me... if offer isn't accepted and I need my cashier's check back, it could be trouble to get it back, since I'm not local.
The way we usually do it in my area is we send a copy of the check with the offer. I keep the actual check, cash, money order, cashiers check with the original paperwork. When the offer is accepted I then can deposit the fund it into the escrow account of choice. I don't have to go back to the buyer and get anything else from them. Less hassle. As a Buyer's agent I am acting as their fiduciary and part of my job is handling funds appropriately. If no offer is accepted then I give the funds/check back to the buyer. I have only had cash once it is not preferred.
I see... but in this case I live far away and since I don't feel it's a good chance my offer is taken, but only 50/50, I'd have to drive back 100s of miles to get my check. My understanding is that if offer is accepted I can mail this check directly, to be put into Escrow account. Even if agent doesn't mishandle the funds, the Cashier's check can get lost/misplaced, stolen, damaged, etc, it's like actual cash. So, I don't feel it's OK to give it, and copy should suffice. I decided I'd have to try with another agent who's ok with a copy, if this agent isn't cool with it.
I have an account. But I don't like/want to use regular checks with my account. Yes, can't cancel cashier's check, it's almost like hard cash. I just find it's unusual to be asked for hard copy, as I spoke to over a dozen real estate agents and they all told me they'd only need a copy if I placed an offer.
I think it's a sign he either mistrusts me or wants to defraud me. Probably a fraud... yeah sure I'll give my money to a total stranger not even knowing if the bank is interested in my offer! I don't trust them... even a regular check--a check would have bank account number on it actually...and you're supposed to mark out account number from the proof of funds!--you give your account number to a total stranger.. haven't seen his ID, license or anything...
In this particular case, I think going into a credit union or community bank and opening a checking account would be warranted. In making offers for REO, it is usual and customary, in my area, for listing agents to ask for checks with the offers. This allows them to weed out any less than serious offers. If this is what is happening in your situation, you need to be considered a serious buyer, but with minimal detriment to your situation. Have you ever tried to replace a lost cashier's check? Or void and redeposit one. Both relatively simple processes, both could leave you without immediate access to those funds.
If you don't trust your agent, you need a new agent.
I usually go to the bank, and get a bank check for either $500 or $1000, made out to the reo bank the realtor provided me. Then I sign all the offer docs, and scan them all in including the bank check. Then I email a single PDF over to the realtor. I've never had an issue, I never mail them the check unless the offer is accepted.
When the offer is rejected, I simple bring it back to the bank, endorse the check "not used for intended purpose". The bank puts the money back into my account.
Pretty simple. I've done it many, many times.
If the realtor insists on getting the physical check, tell them no, a photo copy a bank check is fine until you get a signed, accepted offer. Let them know this is the way its done. If they wont accept it, you will find another realtor who will.
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