Home Buying in 07072>Question Details

Cativojoe, Home Buyer in 07072

10 days after attorney review who is the 2nd deposit made out to

Asked by Cativojoe, 07072 Mon Nov 2, 2009

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Ultimately, it's the attorney's who decide during the attorney review who will hold the money - that's part of what happens during the review.

Francesca, it might be different in your part of the state, but here in northern NJ, our closings are at the buyer's attorney 's office, as we "go where the money is", and it is the buyer's attorney who cuts all the checks. The only check the sellers's attorney may bring, if he or she has it, is the deposit money. The buyer's attorney cuts all the other checks - the commissions checks and disburses checks for any moneys due.
2 votes Thank Flag Link Fri Nov 6, 2009
Well if it's an consolation JR, during our attorney review period (3 business days, or longer if the attorneys take their time) either party can cancel the deal with no reason given....thus, a higher offer can kill the deal.....or simply buyers who wake up with buyer's remorse!

So - it isn't over till it's over!!
1 vote Thank Flag Link Sat Nov 7, 2009
Gee Debbie, I wish we started with signed contracts, it would have saved me a lot of agita on my last lost deal where another buyer offered more a week later.
1 vote Thank Flag Link Sat Nov 7, 2009
When I write up a contract (also qiuite different from what is done in NY, as we start with signed contracts here JR), often the buyer doesn't know yet who they may be using as their attorney, so the initial (usually $1000) good faith deposit is always made out to my company (ie - buyer's agent's company). Itis deposited as soon as we have fully signed contracts.

The balance of the deposit isn't due until 10-14 days after the review is over, and by then the attorneys have decided who will be holding the money. I don't have to tell the buyer what to do...the attorneys have decided by then, and I will follow their instructions. If it is decided that an attorney will hold the deposit money, then I have to request to have the initial $1000 released by our accounting department, and sent to the appropriate attorney, which most of the time is the seller's atorney.. That;s how it is done here, in my part of the state.

Interesting how differently thinga are handeld from state to state.
1 vote Thank Flag Link Sat Nov 7, 2009
Hey JR - Here in Middlesex and Monmouth counties the closings are also at the buyers attorneys office....

That is why the best thing for the buyer to do is give the deposit to their attorney and let him/her address who holds the funds. In my experience, the sellers attorney is usually fine with the funds being in the buyers attorney escrow account. Either way, it is held in escrow and can not be released to anyone until lcosing or both attorneys agree on where it goes.

NY is a totally different animal altogether in aspects of a transaction. (I am licensed in both states)
1 vote Thank Flag Link Fri Nov 6, 2009
Francesca, it might be different in your part of the state, but here in northern NJ, our closings are at the buyer's attorney 's office
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That's interesting. We do it at the seller's attorney usually.
1 vote Thank Flag Link Fri Nov 6, 2009
check should be made to the seller's attorney
1 vote Thank Flag Link Fri Nov 6, 2009
Hi Cat -

It does vary,

I usually tell my buyers to give the second deposit to their attorney.

I also write on my contracts that the buyers attorney will hold the deposit monies, this way if anyone has an issue with where these funds are held, it will be addressed in attorney review and defined for all to review and accept.

Rarely, if ever, are closings delayed due to deposit money not being available.
Give your deposit money to your attorney, and he/she will take care of dispering the funds at the proper designated point. This way you are covered.
1 vote Thank Flag Link Thu Nov 5, 2009
Hi Cativojoe, your best bet is to call your attorney and ask this question - as prior posters have said, may be to realtor's brokerage, your attorney, or seller's attorney. In all cases the monies are kept in escrow. Ask for specific payee name - if to attorney it will likely be to the attorney trust account of that attorney. This is generally sorted out during attorney review. Another question to ask is whether that check needs to be certified. Generally it does not but do ask.

Talk to your agent or call your attorney.

Good luck,
Jeannie Feenick
"Unwavering Commitment to Service"
Find success at http://www.feenick.com
Web Reference: http://www.feenick.com
1 vote Thank Flag Link Wed Nov 4, 2009
It depends on what your contract says. Sometimes its to the buyers attorney, but most of the time, the sellers' attorney holds the funds.
Check your contract and then your attorney review letter for any changes to the original contract.
Web Reference: http://www.dianeglander.com
1 vote Thank Flag Link Tue Nov 3, 2009
Hi Cat -

It does vary,

I usually tell my buyers to give the second deposit to their attorney.

I also write on my contracts that the buyers attorney will hold the deposit monies, this way if anyone has an issue with where these funds are held, it will be addressed in attorney review and defined for all to review and accept.
1 vote Thank Flag Link Tue Nov 3, 2009
PS Just for those who are wondering....my response was geared to NJ........it might differ elsewhere
1 vote Thank Flag Link Mon Nov 2, 2009
Hi Cat
The 2nd deposit is generally made out to either the buyer's agent's company, or to the seller's attorney's trust account.

This isn't written in stone.....so, for example..........there could be instances where the buyer's attorney holds the money.
Where the deposit is to be held is determined during the attorney review. It should be specified in the contract or in the addendum.

Hope this helps!
Debbie Rose
Prudential NJ Properties
1 vote Thank Flag Link Mon Nov 2, 2009
Cativojoe,

The second deposit can be made out to the buyer's or seller's attorney. During the attorney review, it would be finalized as to where deposit monies will be held. At the close of the review you and your agent should be notified as to where deposit money will go.

Initially it should have been discussed between you and your agent. It is possible to put deposit money into the broker's escrow or your attorney's escrow. Deposit monies are held in escrow and cannot be released unless authorized by the attorneys.

Good luck,

Sean Babb
sean.babb@century21.com
0 votes Thank Flag Link Sat Nov 14, 2009
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