RE Contracts Ch. 5 Earnest Money
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Earnest money check is made payable to...
title company; most likely in the form of a cashiers check
An earnest money check needs to be deposited in what time period?
-asap; 1-2 days
Some brokers try to obtain what percent of price for earnest money?
Out of state deals often use large earnest money deposits in residential sales. Does Texas?
No Texas does not; remember when dealing with out of state buyers
What do you put in the address blank under earnest money?
The Title Company's address
Where do we mostly close?
- At title insurance companies
- -escrow agent; usually title company
- -get a receipt when check is handed in and get the receipt at the bottom of the contract signed.
A __________ copy of the contract from the title company is evidence of the existence of the contract.
Additional earnest money blank is mainly used for
- if the buyer does not have the full amount of earnest money and will get the rest later.
- -if buyer does not get the additional money by the specified date, the buyer is at default
When should an earnest money check be received?
-after both the buyer and seller sign the contract.
It is illegal for a party, broker or salesperson to tell the title company to hold the check from running unless...
both parties agree
What are the three main things that can cause the earnest money to be taken out of the title company's escrow account?
- -deal closes, earnest money is used to pay off some of the buyers closing costs.
- -deal does not close; one side sues for earnest money
- -deal does not close, both parties on who it may be paid to.
If a buyer is at default for not giving the earnest money on specified date, the seller can exercise the remedies of...
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