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Location: Mokelumne Hill, CA & El Pescadero, BCS MX.
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Earnest money in CA is supposed to be held uncashed until there is a signed agreement by both sides in a transaction. The buyer's agent is then supposed to open an escrow (usually within 3 days) and deposit the earnest money into escrow. If the deal falls apart because of inspection issues (or any other contractural contingency), notification to the seller must be made and the release of escrow money is accomplished when both parties sign a release.
If there is no agreement on an original offer and no escrow is opened, the earnest money check should be returned to the buyer as soon as practicable. I usually void the check and put it in the mail to the buyer, but sometimes the buyer asks us to hold on to it in case they find some other property to make an offer on.
OK, it's been three weeks. I was told last week that it was "in the process" and would be sent out late last week or beginning of this week. It is in the state of Missouri.
Did the seller sign off that they agreed the deal was dead in some fashion? Depending on local law/custom, it might be on a separate "termination" form of some sort, or it might just be a signed rejection of whichever stage of the inspection process you were at.
If that hasn't happened, that's probably the cause for the delay. If it has, there is no excuse, and you should complain to the broker.
Note: In my area, it is required to get a receipt for returning that Earnest Money. If they are mailing it to you, and they need a receipt, they should send a Self Addressed Stamped Envelope and whatever they need signed. Sign it and send it back. Its a paperwork audit thing.
When buying a bank owned foreclosure, how much earnest money should you submit with your offer? If the home is $335,000, how much would be good? An agent I spoke with said $20,000 so they will take my offer serious???????????? I'm not comfortable with this amount.
When buying a bank owned foreclosure, how much earnest money should you submit with your offer? If the home is $335,000, how much would be good? An agent I spoke with said $20,000 so they will take my offer serious???????????? I'm not comfortable with this amount.
Wow, I don't know. I'd be sure to start another thread though so people who might know will be sure to see the question. I generally deal with much lower priced properties so my ernest deposit isn't that big a dollar amount. Hope you get some help.
1% is pretty normal in my area, so I'd say around $3500 would be an acceptable EM amount for that price range. However, if you are making a lowball offer, or are asking for the bank to pay your closing costs, or are expecting there to be multiple offers on the table, you want to make your offer as appealing as possible. This is one way to do that.
to the original poster: the emd can only be returned (in my state) when both parties have agreed and signed paperwork to that effect, then it has to be handled internally for a check to be cut. Have you recieved a copy of the release due to inspection?
to the $20k deposit person. That is a hefty deposit. I don't think I would be comfortable putting that much down UNLESS you have credit issues? or something funky? in a straight deal that is quite a lot of earnestness......
shelly
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