Good faith money

Asked by hereinhull, Boston, MA Tue Jan 18, 2011

when is the check cashed/put into the bank? We signed the offer to purchase, had a good home inspecction, an are signing the P&S tomorrow, but the check isnt cashed. Should I be concerned the seller isnt serious, or is this standard?

Help the community by answering this question:

+ web reference
Web reference:

Answers

17
Vincent Murp…, Agent, Boston, MA
Mon Mar 7, 2011
Check should have been cashed. Call the broker to find out why not. good luck
0 votes
Territory.c…, Agent, MA,
Wed Jan 26, 2011
Just ask the broker. Sometimes the bigger agency hold check or it takes a while for it to get cashed. It's sloppy but I wouldn't get concerned until you hear their reason.

http://territory.com
Web Reference:  http://territory.com
0 votes
Melissa Manc…, Agent, Plainville, MA
Tue Jan 25, 2011
As escrow agents in MA, we are required to make those deposits within 24 Hours. Glad to hear it is straightened out though! Congratulations on your new home!
0 votes
Sarah Goulart…, Agent, Plymouth, MA
Sat Jan 22, 2011
As others have said, I would not be concerned and it sounds like your real estate agent has already followed up. I would say that normally, that first check is deposited into the escrow account once the offer is accepted, but it can vary.

Congratulations on buying your new home!
0 votes
Heidi Zizza, Agent, Framingham, MA
Wed Jan 19, 2011
The Seller does not EVER get the check. It should go into an escrow acct with the listing agency. You should be concerned from the standpoint that your lender will want proof of this deposit. It should be deposited immediately and your buyer agent should be checking ASAP
Web Reference:  http://www.mdmrealtyinc.com
0 votes
Ron Campbell, , Boston, MA
Tue Jan 18, 2011
Unless otherwise agreed to in writing by the parties involved in the transaction all money paid to or turned over to a real estate broker to be held during a pending transaction shall be immediately deposited into a bank escrow account/or trust accout for the benefit of client money. Brokers are requied to keep records of funds deposited into the escrow account. These records must clearly indicate the date and from whom the money was received from. Any further questions email me roncampbell@kw.com

Ron Campbell
0 votes
Linda Burnett, Agent, Boston, MA
Tue Jan 18, 2011
A Boston broker replies:

It's been my understanding and practice since I started in the business a couple of decades ago that "earnest monies" attached to the offer or to the Purchase and Sale Agreement MUST be deposited in (usually, but not always) the escrow account of the listing firm IMMEDIATELY (= as soon as is humanly possible) after the offer/P&S has been signed by both parties. The recorded deposit is part and parcel of the Offer to Purchase and should not be treated lightly, as lack of such deposit could be a factor if the seller wants to wiggle out of the transaction.

You have the right to request and to see the deposit slip from the listing firm's files. As another responder mentioned, your bank/mortgage company will likely be looking for it shortly anyway.

Best of luck in your purchase.

Linda Burnett
Keller Williams Boston-Metro
0 votes
hereinhull, Home Buyer, Boston, MA
Tue Jan 18, 2011
ok, just heard from my agent again. She had contacted the listing broker to inquire and the broker said they were waiting to get through the home inspection (last friday) and then just didnt get a chance to get to the bank yesterday. They told my agent it would be deposited today. That is a big relief!
0 votes
Marge Bennett, Agent, Fort Myers, FL
Tue Jan 18, 2011
in Florida, that could get an agent's licensed at least disciplined if not revoked. talk to your agent or their broker ASAP
0 votes
Kevin Vitali, Agent, Tewksbury, MA
Tue Jan 18, 2011
I am assuming the seller is being represented by a real estate company. If they are all good faith deposit monies should be put into an escrow account immediately. If you have a concern contact the listing agent.

If you are financing the property your mortgage company will also want to see a canceled check for the good faith deposit and you do not want that held up.
0 votes
Sharon Seabu…, , Wakefield, MA
Tue Jan 18, 2011
I would contact your real estate agent who is representing you. Ask them to contact the sellers real estate agent to discuss why it has not been cashed as of yet.

I would not be to concerned with the sellers not being serious. This is probably an oversight on the Sellers agents behalf.
0 votes
Phil Rotondo, Agent, Melbourne, FL
Tue Jan 18, 2011
You shoud be concerned. There are strict rules for escrow deposits and good faith money. You should contact the broker immediately and resolve the matter.
Web Reference:  http://www.321property.com
0 votes
Melissa Bark…, Agent, Washington, DC
Tue Jan 18, 2011
The good faith money needs to be put into a broker's escrow account or a settlement company account shortly after the contract is ratified, even before all the contingencies have expired, though depending on who it is, they can hold onto the check for a little while and cash it after the first few days the contract has been ratified.

If you have talked to your agent and they feel you are ok than you should be in good hands. If you are still worried about it in a week, ask you agent to check on it again, they are there to help you feel comfortable with the home buying process.
0 votes
Tony McMahon, Agent, WHITE PLAINS, MD
Tue Jan 18, 2011
It is generally deposited in an escrow account by the buyers or listing agents broker, immediately following having a fully ratified contract. ( Both sides agree to and sign of on the terms)
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Jan 18, 2011
Don't worry! If you have an agent working for you, you are in good hands. Sometimes it can take weeks for an earnest money check to be deposited. Good luck to you!
Web Reference:  http://www.sallygrenier.com
0 votes
hereinhull, Home Buyer, Boston, MA
Tue Jan 18, 2011
She said it is usually deposited right away. I just talked with her and she said dont be concerned, and that all should be fine. I am just a nervous wreck.
0 votes
Sally Grenier, Agent, Boulder, CO
Tue Jan 18, 2011
No, I wouldn't be concerned. The seller should not be the one holding the money. Ususally it goes to the title company or listing brokerage to be held in escrow until closing. What does your agent say?
0 votes
Search Advice
Search
Ask our community a question

Email me when…

Learn more