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.