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Hi,
I am currently in attorney review for a home i am purchasing. When will and who will start collecting money for the escrow account ? My attorney or the lender, real estate agent? Will my good faith deposit and initial downpayment go into this account?
Any information is appreciated. My agent is guiding me however I would like info from additional resources.
I believe it goes into the broker's (the person your agent works for) escrow account and then is transferred to the lawyer's account as you get closer to the closing date. So, yes, you can give the checks to your agent.
You shouldn't have to worry about the transfer by the way, the agent should take care of that.
I guess the problem that Im having with this is that I am under the impression that a third party is responsible for handleing the escrow funds?
The lawyer is the closing agent, the third party. They are the ones who settle all the funds at the end of the day. But for now, the agent puts the money in an escrow account under the broker's name.
Are you concerned about giving money to your agent for some reason?
No I'm not concerned about giving money to my agent, he just hasnt taken any yet and we're in attorney review.
Below is a statement i found from a coldwell banker website:
3. The Deposit Monies - Once the Attorney Review has been completed, the Buyer must meet the deadline set forth in the Contract to bring their Deposit monies to their Attorney. The Attorney will then forward the Deposit monies to the appropriate party in good-faith preparation for the closing.
Did you indicate Ernest money would be placed with the contract? It's possible you didn't and therefore won't be paying anything out of pocket until the day of the closing when you must come with the cash for closing costs and your down payment. My guess is no one is asking because no money is needed. In my experience, when money is needed, you know it and hear it often.
The agent should have at least collected a $1000 binder check from you when you signed the contract. It should have been made out to his company and to be placed in the company's escrow account.
I gave a $1000 deposit to my agent (who gave it to the seller) as a "good faith" gesture that we werent backing out but would require another 2-3 weeks to finish things up. I gave $2000 to my Lawyer to handle paying of surveyors and inspectors and what-not. Then after attorney review I gave my "real deposit" to my lawyer to hold in escrow until everything was signed. After all the paperwork, My Lawyer accounted for all expenses and divied up the remaining money to him, the seller, agents, banks, whoever.
IMO I would not give money to an agent. But, Im just not a very trusting person.
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