Earnest Money Deposits and Wholesaling

Earnest Money Deposits and Wholesaling

Tucson, AZ · Member since 2019 · 74 posts · 14 votes

To open escrow, we need a signed contract and earnest money deposit check that we give to our title agency. 

If we are wholesaling and assigning the contract to another buyer, what happens to our earnest money check? How do we get that back since we won't be the ones closing? 

Also, if the we give the EMD check to the title agency do they hold the check until it's needed or do they cash it?

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  • Specialist · Purcellville, VA · Member since 2015 · 1k+ posts · 841 votes
    7y
    Make sure your contract spells that out.  My assignment contract specifically states that I get my EMD back from the buyer.
    The check is cashed and put into a special account where they hang on to all of that money.
  • Tucson, AZ · Member since 2019 · 74 posts · 14 votes
    7y

    Thank you!

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