Wholesaler · Baton Rouge, LA · Member since 2008 · 471 posts · 98 votes
I recently had a buyer back out of an assignment wholesale deal. He gave me deposit check for $1000 made out to my Title Company. Now that he has backed out and forfeited his deposit check, do I ask the Title Company to deposit his check in their account and make out a check for $1000 to my company?
You can check with them and see if they will do that, but don't be shocked if they return it to your buyer who backed out. ALWAYS get a check made out to you or your company if you have one for $2,000 minimum, at the time you assign the contract to your buyer. Make sure in your assignment contract, you document the deposit, and make sure it states and that they know that it is non-refundable. That way everyone is clear up front. If your cash buyer contacts you about another property in the future, make them give you a $5,000 non-refundable deposit since they have a poor track record with following through. If they get an attitude, be polite and let them know that they cost you time and money on the last deal because they backed out. If they refuse, then find another buyer. If they give you the $5K and back out again, then don't do business with them anymore.
Chris, Thanks for the response. I used to have the check made out to me but several "gurus" I've following said the check should be made out to the title company.
I will resort to having it made out to me. Also this particular buyer is now off my list regardless of how much deposit he wants to give me.