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I will be making an offer on a property. The contract lets the seller select the escrow company and then we pay our own fees. Do sellers usually have an escrow account set-up in advance of an offer? If the offer is accepted, do sellers immediately provide the company name, address, and account number?
I am asking because of time deadlines. I will have three business days after acceptance to deposit the funds. If they spend a day or two getting an escrow account set-up, then I have less time to follow through. I know I could wire the funds, but my bank will charge me $35 for an outgoing domestic wire. On the other hand, this same bank provides me free cashier's checks. I can then mail this cashier's check via USPS Priority Express (within two business days) and get delivery tracking all for under $6.
Cashier's checks are considered "Good Funds," but escrow companies can delay recording of cashiers checks for one business day after deposit. Therefore, I am thinking of having my written offer provide me with five business days to deposit earnest money. I'm wondering how others have handled their earnest deposit transaction. Thank you for sharing.
Let's step back. Is this property listed by a listing company? Seller don't have to set up any escrow. It's done by the listing company. Some listing company requires cashier check while other take personal check without a problem. I've put in an offer before when they wanted cashier check but didn't even need it right away. I just SMS a picture of the cashier check front and back and drop it off at the office a few days later.
I got a letter from the title company (escrow holder) informing me that the funds will be accepted as a wire transfer only AND they need to be wired at least 7 days prior to closing to be sure they've "settled." At this end of the process, after jumping through a ridiculous set of hoops, I'm close to saying "Fine - pay me 7 days worth of interest on it while you hold it or else you can have the wire transfer when you hand me the closing paperwork to sign."
Let's step back. Is this property listed by a listing company?
The home is on MLS and has a listing agent (and also a realty company name). It's a standard sale, and I have a buyer's agent. The escrow company will probably be located in the metropolitan area about 40 miles away from me. So I won't be able to drive the check in and deposit it during their business hours.
Quote:
Originally Posted by PNW-type-gal
I got a letter from the title company (escrow holder) informing me that the funds will be accepted as a wire transfer only AND they need to be wired at least 7 days prior to closing to be sure they've "settled." At this end of the process, after jumping through a ridiculous set of hoops, I'm close to saying "Fine - pay me 7 days worth of interest on it while you hold it or else you can have the wire transfer when you hand me the closing paperwork to sign."
This is good information to know. Thanks. My offer gives me the option to state how I will pay the funds (electronc funds transfer or cashier's check), but the escrow company may have different rules. My state's "Good Funds" law says that cashier's checks are an acceptable form of payment.
My offer/contract states that the "Buyer shall deliver deposit directly to the Escrow Holder."
I read that as through their representation, if any present.
in events past where an EMD needed to be held by the sellers choice, it was either hand delivered (and a receipt provided by whomever accepted it at the office it was delivered to), or it was overnighted and a tracking number was provided.
everything. everything, must be trackable IMO when it comes to money and/or contract paperwork.
Back to my (re-worded) question: Do listing companies usually have an escrow account already set to use when an offer is accepted?
the seller, via their listing company, may have a title company/settlement agent etc that they intend to use for their portion of the transaction. should they deem any buyer escrow funds be held by that company (and you, as the buyer, agree in writing per your contract, to allow that company to hold it, then you just deliver within the allotted timeframe.
Back to my (re-worded) question: Do listing companies usually have an escrow account already set to use when an offer is accepted?
I think you're very confused. All you need to do is get your check to the title company. The title company has their own accounts set up. Your money will sit in their account with all their other money. You don't get your very own account with them. All you need to do is call the company and they'll send a courier to pick up your check. Why would you mail it? 40 miles is not that far.
You said your contract states that you, as the buyer, have to do it personally, but that's not true. "Buyer" is all inclusive. Someone who represents you and your interests can deliver the money also. You can have a parent drop it off, or a sibling, or a friend. You're reading the language too literal, or how can you say the post office is considered the "buyer"?
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