Is there a rule as to the number of days buyer has to deposit E M with title company?

Asked by darrelj, Dallas Center, IA Mon Oct 1, 2012

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John Crowe, Agent, Austin, TX
Tue Oct 2, 2012
BEST ANSWER
There is, in fact, nothing that states when the EMD is due to the title company. Option money, yes. The only concern is delivering within a reasonable amount of time and that must be determined by the parties involved in the transaction.

Most agents default to two days because it corresponds to the option timing. Yet the only language in the contract (referring to One to Four Resale) relating to EMD is the 2nd sentence of Section 5: "Buyer shall deposit additional EM of $XX with escrow agent within XX days..." This only qualifies if additional money is required.

Best course of action: Get the EMD to title as quickly as possible after the contract has been executed.

Good Luck!
Web Reference:  http://www.crowehomes.com
0 votes
Leslie Negron…, Agent, Austin, TX
Mon Oct 1, 2012
This really depends on the terms of the contract. Is this the intial EM or second round of EM?
1 vote
intial and when can the seller assume that the contract can be terminated and sold to someone else
Flag Tue Oct 2, 2012
Jim Schaffra…, Agent, Cedar Park, TX
Tue May 14, 2013
Option Money must be deposited within 2 days of contract execution date. Earnest Money timelines are usually in the contract
0 votes
Bill Austin, Agent, Austin, TX
Tue Oct 2, 2012
Darrelj,
You need to check Iowa rules/laws. In TX while the contract does not stipulate a number of days TREC has ruled that 2 business day is the reasonable number. If the parties want an extended time frame it must be stipulated in special provisions within the cntract.
Bill
0 votes
Jamee Yule, Agent, Austin, TX
Tue Oct 2, 2012
In Texas earnest money should be deposited at the title company within 48 business hours..this is to accomodate transactions that may be effective on a non-business day.
0 votes
Dallas Texas, Agent, Dallas, TN
Tue Oct 2, 2012
This is posted in Dallas Tx ? Unconfirmed how transactions are in IA .

IF Texas - typically earnest money is applied towards buyers closing cost(s).


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0 votes
Luis Urista, Agent, Austin, TX
Tue Oct 2, 2012
Hi Darrel,

My fellow agents are correct. After the contract has been executed by both parties to the transaction, the buyer has 2-3 calendar days to submit the earnest money along with the contract to the title company.

Luis Urista
Keller Williams Realty
http://www.LuisUrista.Austinkw.com
214-725-1461
0 votes
David Drayer, Agent, Austin, TX
Mon Oct 1, 2012
It's three days for EM and two days to handle the option $.
Good luck.
Regards,
Davis Drayer
0 votes
Shivani Yadav, Agent, Fremont, CA
Mon Oct 1, 2012
Hello Darrel,

Unless changed in the contract ...the default time frame to deposit earnest money into escrow is 3 business days.

Hope this help!

Regards,
Shivani
0 votes
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