Michelle, Home Buyer in Mississippi

Can earnest money be deposited or cashed before closing?

Asked by Michelle, Mississippi Thu Dec 18, 2008

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4
Alan May, Agent, Evanston, IL
Thu Dec 18, 2008
In Illinois, it must be deposited by the end of the next business day. (which could be 24 hours, or could be much longer)...
0 votes
Janine Bowen, , Ulster, Greene, Dutchess and Orange Counties
Thu Dec 18, 2008
As Len stated the funds must be deposited in an escrow account (once the offer is accepted) within 24 hours. This money cannot be co-mingled with other funds and usually is put toward the purchase price at closing, although I have had it returned to the buyer when it was replaced by mortgage money. Sometimes it is deposited in the Broker's escrow account and applied toward the commission at closing, other times it is held by either the Seller's or Buyer's attorney. It is not to be spent by any of the aforementioned, however. This is considered a VERY serious no-no unless permitted by written agreement of both buyer and seller.
0 votes
Len Bowen, Agent, Provincetown, MA
Thu Dec 18, 2008
In Massachusetts the state license law requires that the binder be deposited in an ESCROW fund within 24 hours(I believe thats the windiw).
0 votes
Alan May, Agent, Evanston, IL
Thu Dec 18, 2008
Absolutely... and it's usually cashed (and put into escrow, or an attorney's account) within a day or two of acceptance of the purchase agreement. (depending on local customs).
0 votes
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