Where to put my earnest money deposit once I get a house under contract

9 Replies

I am about to get a house under contract and I am going to put $100 down as an earnest money deposit and I am not sure if I give that money to my attorney or the sellers attorney. Please help!

Thanks,

Cory Gardner

@Cory Gardner

Your contract form typically dictates how the E/M is to be handled and to whom it should be delivered?  

@Guy Gimenez  

it says where the E/M is going to be held and I thought it is supposed to be held at my attorneys escrow account but he told me that it is to be held at her attorneys escrow. Does that sound correct?

@Cory Gardner  

The contract language controls. If you want the E/M held with a specific party at a specific location, the contract must reflect this. In Texas, we typically have the E/M held at our title company unless it's non-refundable, in which case the seller may get the E/M.  

@Guy Gimenez  

that is what I thought as well. I have it in my contract that I am going to hold the money at my attorney but when I called my attorney he said that it is supposed to be held at the sellers but I don't think that is correct. I'm going to call him back and see if he can hold the deposit.

Thanks for everything!!!

No one else mentioned this but nice job getting a deal under contract for only $100 earnest money down. Not all sellers will accept an offer with so little skin in the game. 

In terms of where to hold it I would echo some of the other comments, I typically just put my earnest money with the title company I will be using for the closing and to put my title work anyway. Usually don't get any push back as long as the terms of the contract state when you can get your money back and for what reasons. 

Originally posted by @Cory Gardner :

@Guy Gimenez  

that is what I thought as well. I have it in my contract that I am going to hold the money at my attorney but when I called my attorney he said that it is supposed to be held at the sellers but I don't think that is correct. I'm going to call him back and see if he can hold the deposit.

Thanks for everything!!!

Hey Cory, congrats on getting the deal under contract. Put the EMD with whatever entity you have escrow opened with, sounds like you need a title attorney that works with investors.

Thanks to everyone for responding so far. I put it in my contract that I will put the EMD with my attorney.

You are going to jeopardize your deal to keep a hundred bucks with your attorney rather than the sellers'?

When you get your final legal bill, you may well find that the cost of the calls and setting up an escrow account with your lawyer was more than $100...

@Richard C.

@Cory Gardner  

I fight to use of my title company because in Texas, not all title companies use similar title documents. Title companies (and/or their fee attorney) represent the title company and as such, they will do their best to place liability on third parties....meaning buyers and sellers. The only way they can do this is via their policy and their closing documents. 

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