Updated over 9 years ago on . Most recent reply
Is my broker being deceitful?
We are in the process of purchasing a 9 unit in South Carolina. Our agent took 10k as earnest money a week ago but just emailed me and said that he needs another 10k for earnest money because the law requires a broker in charge to hold 40% in an escrow account. Is that true?? Let's put aside the fact that he didn't know that in the first place!
Most Popular Reply
#1 All Forums Contributor
- Real Estate Consultant
- Summerlin, NV
- 64,944
- Votes |
- 43,950
- Posts
#1 All Forums Contributor
- Real Estate Consultant
- Summerlin, NV
@Melissa N. the BROKER does NOT dictate EM.. its the wish or requirements of a SELLER only.
it is customary though in SC for the broker to hold the EM in their trust account.. and then when it closes the closing attorney gives a credit toward their commission...
unless your not exactly stating whats happening correctly.. this is highly unusual and not legal as well. Brokers cannot demand a certain amount of EM Only the Seller
- Jay Hinrichs
- Podcast Guest on Show #222
