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I agree with the statement of no accepted offer=no deposited check. Plus, checks are made out to title companies in my state. Brokers do NOT handle earnest money and thus do not have the ability to deposit them. Title companies will only deposit them with an accompanied executed contract.
Yeah, in my state, EM gets deposited according to the terms of the contract. In most cases, it is within 1 business day of acceptance by all parties. That is the legal requirement if the contract doesn't say differently. But the contract can also be written that it is deposited upon writing the offer, or if it is a short sale, it can be written that the EM gets held uncashed until bank (3rd party) acceptance. I'm not a fan of that last option, but it is perfectly legal here.
So no one can just say (as gv28 is trying to do) "this is how it is", because it varies from state to state, and in some areas, from contract to contract.
Yes I said it too matter of factly. And yes it would vary by state. And even then a specific handling of the check could be written into the offer. Guessing the OP is in CT, but I don't know. And yes a sharp agent would have been on top of it and asked the client if she was done making any offers and wished her money back now.
But immediate depositing of the check by the Broker as soon as the Broker gets it, and obviously the Broker got it is the requirement in some states and its the right thing to do and I thought the OP is probably looking on it incorrectly thinking some huge injustice was done to her. And I believe it's an area of practice where Brokers want to and need to, because of state law, err, if any, on the side of depositing that check today. But again, that may be a state thing.
So I do still say my opinion, without further information, the Broker probably did not make any error. It seemed to be being implied in the thread that there was misaccounting of funds. I think the thread was going in that direction and I bet that's way off what happened. OP just needs to respectfully request the return of the money she forgot about.
Yes I said it too matter of factly. And yes it would vary by state. And even then a specific handling of the check could be written into the offer. Guessing the OP is in CT, but I don't know. And yes a sharp agent would have been on top of it and asked the client if she was done making any offers and wished her money back now.
But immediate depositing of the check by the Broker as soon as the Broker gets it, and obviously the Broker got it is the requirement in some states and its the right thing to do and I thought the OP is probably looking on it incorrectly thinking some huge injustice was done to her. And I believe it's an area of practice where Brokers want to and need to, because of state law, err, if any, on the side of depositing that check today. But again, that may be a state thing.
So I do still say my opinion, without further information, the Broker probably did not make any error. It seemed to be being implied in the thread that there was misaccounting of funds. I think the thread was going in that direction and I bet that's way off what happened. OP just needs to respectfully request the return of the money she forgot about.
You have to balance those CTA funds every month. Sorry...they should have been aware that the money was hanging out in there too long.
The answer is that there was no error by the agent or broker. Broker is required by law to immediately deposit any escrow check. He has earned no interest on it. He won't be charging you any handling fee.
Perhaps the agent could have educated you on this when you handed over the check. But it's your money, you should have requested it be paid back when the offer did not go through. The broker would have written a check to you as soon as your check cleared. Often though a buyer makes more offers through the broker, the buyer leaves it there until finished in one way or another.
Not exactly. The broker is required to follow the directions for handling earnest money according to how the contract is written. I believe it is best to write contracts so that no check is cashed until there is an accepted offer between all parties, but not all agents do this. Sometimes it is cashed and held in an earnest money account right away and then you can have problems like this. Of course state by state things are done differently.
Yeah, in my state, EM gets deposited according to the terms of the contract. In most cases, it is within 1 business day of acceptance by all parties. That is the legal requirement if the contract doesn't say differently. But the contract can also be written that it is deposited upon writing the offer, or if it is a short sale, it can be written that the EM gets held uncashed until bank (3rd party) acceptance. I'm not a fan of that last option, but it is perfectly legal here.
So no one can just say (as gv28 is trying to do) "this is how it is", because it varies from state to state, and in some areas, from contract to contract.
I am also in Idaho and would like to add that it is required at my office that uncashed checks are kept in a locked drawer until. It's a good practice because if an agent is incompetent they lose the check carrying it around. It was a bigger problem than you'd think.
In my state that is an egregious error that if reported would probably generate more than just a slap on the wrist. The REC considers mishandling of money a big no no. I think the OP probably should report them, but that's just me. I can't believe the BIC had the nerve to try and charge a 15% handling fee.
The only information I see as to time is "Last summer" Did you ever hear anyone say 'This next week...." What do they mean? It is the same with Last, some people use it one way, some another. I think she is talking summer 2012. If it was 2011, then, yes, any Broker should have seen the $1000 and should have questioned it. But if it was 2012, the Broker, who does have an escrow account, would have many different deposits sitting there for several months while investors (she is an investor) made offer after offer, and it would be customary to simply reference in each subsequent offer, "escrow already on deposit with Broker". Also many other deposits sitting there for many months while short sales were in process. Clearly from this thread many people are not even familiar with a Broker having an escrow account, which are under much more stringent requirements than title co escrows.
Maybe OP will clarify time for us.
As far as making offers on a good hot property that is going to have multiple offers:
Offer #1: has a nambny - pamby maybe there will be a deposit check in two days, then the Broker doesn't really have to deposit it, and so we'll know soon or maybe not if the check is even good or not
Offer #2: has a deposit check that is going in the bank today.
Which one are you writing for your client? Are you doing your client a service by writing offer #1? Really?
I think the 15% handling fee that someone's sister's uncles's neighbor was said to be charged was someone elses story other than the OP.
Of course neither Offer # 1 or #2 got the deal.
Offer #3: Escrow Deposit is cashiers check. Copy attached.
GV: Couple of points you seem to be missing. The check is written at time of offer and held by broker with a copy of check sent to listing agent with contract and PQ letter. Offer accepted, check deposited within 2 days. If check doesn't clear we are required per contract to notify listing agent. If broker doesn't deposit check that's on them. It's pretty clear cut how it works. I don't know what point you're trying to prove but you're incorrect by most agent accounts of their state laws/contracts. Not trying to be mean but a lot of people read these posts and it wouldn't do for you to mislead them about the process through or ignorance, intentional or not.
1-If we don't have an offer we don't deposit the check that simple so there was no reason for it to be sitting there an an escrow account. Timing of the offer is irrelevant, there was never a contract.
2-If we have a ratified contract and deposit it, then the deal falls through, we still can't hold onto the EM and use it for the next deal. We have to refund it then get a new check for the next property. I don't love that extra paperwork but that is how my state tells us they want it done.
Disclaimer, state laws vary. If you have questions about how your state works regarding earnest money check with your RE agent.
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