Never play around with option money. You cannot prove it was even sent and mail is lost all the time. If you read the contract it states the following:
If no dollar amount is stated as the Option Fee or if Buyer fails to pay the Option Fee to Seller within the time prescribed, this paragraph will not be a part of this contract and Buyer shall not have the unrestricted right to terminate this contract.
Lonnie, you should speak with your broker immediately about this and if you are still within the 2 days you need to hand deliver the option to the seller or listing agent immediately. You have no proof money was even sent and if the funds to not arrive within 2 days and your client wants to back out for any reason as they can during the option period you will need to be responsible for the lost earnest money as well as any other damages for specific performance because of your client not moving forward with the contract.
Sorry if this sounds scary but the situation you have put your client in is much worse than the tone of this answer. I hope you can work this out or the other party is understanding and may let you slide. Either way this is a position you never want to put you or your client in now or ever again. Also, if the option period is lost the seller is less likely to do any request repairs because essentially you and your client are already bound by the contract to purchase this property.
Best of luck on getting this resolved. I hope everything works out for you. Again sorry for the tone but this is so important. If you are new you should really consider going to work with a broker that gives extensive training. Understanding the contract is one of the most important things you can know about in representing a client to the best of your abilities.
REALTORÂ® | Mortgage Broker
Keller Williams Realty | 360 Lending Group
sorry to rehash this old question, but I just wanted to clarify something for my own sake... (By the way, I ALWAYS hand deliver option money. It is absolutely the safest way to do it)
Paragraph 21. Notices: All notices from one party to the other must be in writing and are effective WHEN MAILED TO, hand delivered at, or transmitted by facsimile or electronic transmission as follows.
Paragraph 23. If no dollar amount is stated as the Option Fee or if Buyer fails to PAY the Option Fee to Seller within the time prescribed...
By writing and signing a check, you are PAYING the option fee. By putting it in the mail (with proof, i.e certified mail), it is considered effective when mailed (although a check is not a"notice"). Would this not be an accurate scenario? I only ask because I am dealing with some investment properties and investors from outside of the state. They would not be able to get me option money and give me time to get it to the agent within 2 days... would this be a workable loophole? (Nothing here will be taken as legal advice, and I plan on having this conversation with my broker tomorrow as well...)
If you (or anyone) is still following this thread, I would appreciate your opinion.
Next time, I will send the option check by priority so I don't have to go through this stress.
Thanks for the answers!
Lynn911 Dallas Realtor & Consultant, Credit Repair Advisor
The Michael Group - Dallas Business Journal Top Ranked Realtors
But everything is subject to the parties belief and willingness to fight for what they want.
Next time take the funds directly to the listing agent and get it receipted within the 2 days! By the way I am not an attorney and did not just give you legal advice!
Best of luck .. Bruce