How Soon to Submit the Earnest Money Deposit

How Soon to Submit the Earnest Money Deposit

Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes

How soon after your offer is accepted do you submit the earnest money deposit

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Title Representative · Fort Lauderdale, FL · Member since 2009 · 62 posts · 24 votes
16y

And if you are dealing with REO, a lot of the banks are now requiring proof that the closing/title company has received those funds. They are not releasing their signed contracts until they verify this.

(SIDE NOTE): Before sending, always confirm where to send the check to and what type of funds are required (wire, personal, certified). It's never fun tracking down a lost EMD check. With the "good funds law", many are limiting the type of funds they will accept these days...

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  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y

    You only have a set amount of time to do so and standard is within 3 days of written acceptance of offer.

  • Investor · Detroit, MI · Member since 2008 · 296 posts · 11 votes
    16y

    And after 3 days the contract becomes void?

  • Title Representative · Fort Lauderdale, FL · Member since 2009 · 62 posts · 24 votes
    16y

    And if you are dealing with REO, a lot of the banks are now requiring proof that the closing/title company has received those funds. They are not releasing their signed contracts until they verify this.

    (SIDE NOTE): Before sending, always confirm where to send the check to and what type of funds are required (wire, personal, certified). It's never fun tracking down a lost EMD check. With the "good funds law", many are limiting the type of funds they will accept these days...

  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    16y
    Originally posted by Tiara Murray:
    And after 3 days the contract becomes void?
    That is up to the discretion of the seller, but legally, yes it becomes void as the contract stipulates that.
    If it stipulates 5 days, then after 5 days it is void.

    Jamie also states a valid point that the banks want to see proof of the EMD.

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