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Old 08-21-2012, 09:49 AM
 
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When our agent submits our offer she uses a faxed copy of a check? Could this possibly hurt our offer being accepted?
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Old 08-21-2012, 09:56 AM
 
Location: Barrington
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A copy of the earnest money check is customary in my neck of the woods and the physical check is handed over when the contract is accepted by both parties. It's also customary to make 2 earnest money deposits, the first with the offer and the second contingent upon the close of the attorney review/home inspection period. This may or may not be the case in your area. There is no national standard for earnest money.

Earnest money checks should never be made payable to the seller.
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Old 08-21-2012, 01:14 PM
 
Location: DFW
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It really means you are serious enough to go ahead and write a check. I always send a copy with the offer. Here the check is made out to the Title Company and I'll hold the check until we have an executed contract. It then goes to the Title Co to be deposited and held in escrow.
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Old 08-21-2012, 06:40 PM
 
Location: Tempe, Arizona
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Quote:
Originally Posted by Rakin View Post
It really means you are serious enough to go ahead and write a check. I always send a copy with the offer. Here the check is made out to the Title Company and I'll hold the check until we have an executed contract. It then goes to the Title Co to be deposited and held in escrow.
Ditto.
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Old 08-21-2012, 09:13 PM
 
Location: Salem, OR
15,490 posts, read 40,182,593 times
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Quote:
Originally Posted by Rakin View Post
It really means you are serious enough to go ahead and write a check. I always send a copy with the offer. Here the check is made out to the Title Company and I'll hold the check until we have an executed contract. It then goes to the Title Co to be deposited and held in escrow.
Ditto squared. This is how we do it too.
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Old 08-21-2012, 09:27 PM
 
Location: Needham, MA
8,524 posts, read 13,896,762 times
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Quote:
Originally Posted by middle-aged mom View Post
A copy of the earnest money check is customary in my neck of the woods and the physical check is handed over when the contract is accepted by both parties. It's also customary to make 2 earnest money deposits, the first with the offer and the second contingent upon the close of the attorney review/home inspection period. This may or may not be the case in your area. There is no national standard for earnest money.

Earnest money checks should never be made payable to the seller.
This is similar to how we do it in MA. I would just add that the EM check is made out to the escrow agent. Usually that's the listing brokerage.
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Old 08-22-2012, 12:06 AM
 
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Originally Posted by Missingatlanta View Post
When our agent submits our offer she uses a faxed copy of a check? Could this possibly hurt our offer being accepted?
Never understood the value of a copied chx. Anyone can write a chx and copy it, it really means nothing. Besides would never accept a personal chx.

Would only sign a purchase contract if I had funds (EM) in the form of a bank chx. A buyer can cancel a chx and you will not know for several days. Many purchase contracts do not make payment binding to the contract. For example, if buyer bolts after signing a contract, cancels his check, you will not recover the right to sue for this EM. This is primarily an issue in states that have a due diligence money in addition to EM.
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Old 08-22-2012, 05:57 AM
 
Location: Cary, NC
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Originally Posted by RE Skeptic View Post
Never understood the value of a copied chx. Anyone can write a chx and copy it, it really means nothing. Besides would never accept a personal chx.

Would only sign a purchase contract if I had funds (EM) in the form of a bank chx. A buyer can cancel a chx and you will not know for several days. Many purchase contracts do not make payment binding to the contract. For example, if buyer bolts after signing a contract, cancels his check, you will not recover the right to sue for this EM. This is primarily an issue in states that have a due diligence money in addition to EM.

The copy is the agent's stipulation that agent has buyer's funds in hand, ready to deliver.

EMD in any form would typically not go to seller but would be held in trust by a real estate firm, closing attorney, or title company.

Billions of dollars in real estate successfully conveys yearly with personal checks in the mix.
Billions and billions of dollars.

I have never seen a personal check EMD as an issue, from either side of the table. Of course, the NCAR standard contract indicates that EMD after Due Diligence will be in certified or readily available funds. No personal check. Mostly that is borne of the need for the check to clear before settlement.
I would be curious for anyone with involvement in real estate transactions to share their stories of buyers stopping payment on personal checks.
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Old 08-22-2012, 10:40 AM
 
Location: DFW
40,919 posts, read 48,828,683 times
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Originally Posted by MikeJaquish View Post
I would be curious for anyone with involvement in real estate transactions to share their stories of buyers stopping payment on personal checks.
In my early days I learned to tell the Buyer "And they deposit this check" very clearly multiple times. I've had a few that did not transfer the funds in time thinking the check was just held till closing.

I would think an EM check that is canceled or not funded would make the contract voidable by the seller if not covered quickly. The Buyer would be in default of the contract.
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Old 08-22-2012, 10:56 AM
 
1,784 posts, read 3,446,279 times
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Quote:
Originally Posted by MikeJaquish View Post
The copy is the agent's stipulation that agent has buyer's funds in hand, ready to deliver.

EMD in any form would typically not go to seller but would be held in trust by a real estate firm, closing attorney, or title company.

Billions of dollars in real estate successfully conveys yearly with personal checks in the mix.
Billions and billions of dollars.

I have never seen a personal check EMD as an issue, from either side of the table. Of course, the NCAR standard contract indicates that EMD after Due Diligence will be in certified or readily available funds. No personal check. Mostly that is borne of the need for the check to clear before settlement.
I would be curious for anyone with involvement in real estate transactions to share their stories of buyers stopping payment on personal checks.
Yeah, for the last house I bought, we set a closing date 20 days after we ratified the contract. We gave the broker a $5,000 EM personal check when we put in the offer, and then they deposited it 12 days after that (8 days before closing). I can't remember if that was after all the contingencies went away or if that's just when they like to do it (i.e. why that day to deposit was chosen).
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