When putting an earnest money amount on contract, does the cash buyer write a check to you or to the title company and how soon can you get it?
Based on my experience, the buyer writes the check to the title company and upon closing, all the money goes to the seller.
Otherwise, if the buyer changes his mind after the option period, or whenever the contract yall agree to states, both parties must have in writing where to release the earnest money from the title company. (also I've heard that there are different laws on option periods in different states)
@Evan Rymer = earnest money is distributed at closing and it has to be held in a escrow account mandated by your state laws. Depending on the law it can be held by an agent, lawyer, or title company with an established escrow account
@Evan Rymer The best options are 1) Broker 2) Attorney 3) Title Company.
I've noticed more and more Brokers are declining to hold earnest money. Attorneys typically have our own escrow account, but not all want to use it for earnest money. I'm always happy to hold earnest money for my clients. I'm not a huge fan of title companies holding earnest money because I've had some bad experiences.
@Brie Schmidt Thanks.
@Evan RymerThis was helpful.
@Evan RymerSo I need to contact the Title company and go ahead and setup an account? What if I am dealing with a property not in my state but another, do I have to setup accounts in other states that I deal properties?