Wire earnest money before contract is executed

3 Replies

I had an offer "accepted." It is an REO that went into multiple offers and they have accepted my offer. The listing agent asked me to sign their contract documents, which is fine. They have asked me to submit the contract with receipt of deposited earnest money at which point they will have the sellers sign and send me the executed contract?

Anyone heard of sending earnest money before receiving an executed contract?

It is common practice if earnest money is not received in a timely manner they will sell to the next bidder ,of course your money is going to an escrow company 

Originally posted by @Andrew Jacobson :

I had an offer "accepted." It is an REO that went into multiple offers and they have accepted my offer. The listing agent asked me to sign their contract documents, which is fine. They have asked me to submit the contract with receipt of deposited earnest money at which point they will have the sellers sign and send me the executed contract?

Anyone heard of sending earnest money before receiving an executed contract?

I generally give the EMD check to my realtor along with the signed contracts (yet to be signed by the seller), so yes, it doesn't sound all that unusual to me. As mentioned above, make sure it's going to a title company.

I have always just included a copy of the EM check in the offer.  Once executed, I then wire the funds within the 48 hour period.  I have never been asked to actually wire the money into escrow when giving my signed portion.  Thanks for the responses