Do they wait until closing to cash earnest money checks?

Asked by U, 55927 Wed Sep 8, 2010

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9
Susan Hoffla…, Agent, Shoreview, MN
Thu Sep 9, 2010
In Minnesota, for residential real estate, it must be tendered and deposited within 3 business days after final acceptance by both buyer and seller. That means, if everyone is in agreement about all of the terms of the purchase, they have 3 days to get it in the bank. It gets deposited in a TRUST account (not just given to the sellers or something :) and stays in that TRUST account until closing, when it's credited to the buyers.
Web Reference:  http://www.homestosellmn.com
0 votes
Lisa Cannata, Agent, Falmouth, MA
Thu Sep 9, 2010
Earnest money checks are deposited into a non-interest bearing escrow account with the listing agents brokerage at the time the offer is sgned and accepted. All monies are kept in the account until closing at which time they are realeased to the seller, the bank, or whom ever owns the property.
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Thomas Tolbe…, Agent, Savannah, GA
Thu Sep 9, 2010
No. Once you have a binding agreement earnest money checks must be deposited promptly into a trust account.
0 votes
Brad Anderson, Agent, Maple Grove, MN
Thu Sep 9, 2010
Plan on the check being cashed within 3 days of acceptance, that is the law in Minnesota.
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My NC Homes…, Agent, Chapel Hill, NC
Thu Sep 9, 2010
Once your offer has been accepted and the contracts have all been signed the listing agency or other third party escrow service (this will be clearly indicated on your contract) will deposit your check into the escrow account. The amount of this check will be credited against your purchase price when you close. You lender will verify with the listing company that your check has been deposited and has cleared.
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BayAreaHomeR…, Agent, Vallejo, CA
Thu Sep 9, 2010
Or D, all answers below are correct. Looks like they got you covered U, hope you found the answer and good luck with your home purchase.
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Tim Tilbury, Agent, Seattle, WA
Thu Sep 9, 2010
U

Cameron has a great answer.

The Earnest Money needs to be held by a third party as a good faith showing to go through with the transaction. In Washington it is required to be deposited according to the executed contract.

Good Hunting
0 votes
Cameron Piper, Agent, Forest Lake, MN
Thu Sep 9, 2010
U,

This is a term of the contract during negotiations. You can request anything you like as a buyer or seller. Typically it will be deposited within three business days from acceptance of the offer. However, a buyer and seller can agree to anything that they like - just make sure that you get it in writing.

Cameron Piper
Web Reference:  http://www.campiper.com
0 votes
Jeanne Feeni…, Agent, Basking Ridge, NJ
Wed Sep 8, 2010
Nope, expect that your earnest money check will be cashed promptly upon receipt. It should be held in escrow either by a broker or an attorney. It will move to the seller side at close, BUT it will be deposited (and cashed) into the escrow account to be help safely until close.

Be sure you have available funds to cover that check.

Good luck,
Jeanne Feenick
Unwavering Commitment to Service
Web Reference:  http://www.feenick.com
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