When was the last time you heard of a Real Estate Brokerage Holding an Escrow Account?  Wow  there is a blast from the past.  In a recent featured post Walk This Way.....Can Buyers Just Walk Away From A Contract there was heated discussion and opinion how binding is a  Contract on a Short Sale Purchase.

Broker Bryant clarifies it in his post  A SHORT SALE CONTRACT IS STILL A CONTRACT disspelling the myths behind short sale addenda and a buyer or sellers responsibilities under the terms of a Purchase Agreement.

now here is the rest of the story...

Buyer's Brother is a Broker. (Who by his own admission has not been active in Real Estate for many years but has kept his license current (along with his hyper inflated ego) it was his officiousness combined with his lack of current knowledge and invective interpretation of the contract and short sale addenda which lead to the deal dying.  Despite the fact, that they were given CURRENT accurate information repeatedly.

Don't shoot the messenger.

In which case- if the deposit is forfeited through their own actions, the agents need all be held harmless.  We wait...as they decide if they will sign the Release and Cancellation Agreementor if in his words "it goes before the board for an EDO."... Okay folks when was the last time that happened? 

Back in the day when Real estate Brokerages held their own Escrow Accounts and a dispute arises, the Broker has to implement one of Four Actions.   

Mediate

Arbitrate

Litigate

EDO- Escrow Disbursement Order

But in modern times, most Brokerages have avoided maintaining their own Escrow Accounts, and instead use mostly Title Companies or  Attorney's, Escrow Accounts to hold Escrow checks for their customers. 

The primary reason they do this, is to insure the funds are properly accounted for and are applied to the transactions properly-also a beneficial byproduct was removing them from liability. 

It  simplifies office managements as they do not have to do monthly Escrow Reports and submit them to the Real Estate Commission for scrutiny.  It eliminates the possibility of commingling of Funds (which is a no- no) In essence- it is just more safe and convenient.

So the chances of it going to the Board are slim to none as A Release and Cancellation Notice must first be signed by both parties to the Contract. If either of the parties fail to sign it- that would be cause for an Escrow Dispute.

There are times when what they or a relative (who used to be involved in Real Estate ) "know " is an obstacle so massively overwhelming, that it undermines the best of us- it cannot be overcome with reason or common sense or production of facts. 

The Importance of Staying Current, Taking Classes and Learning is Paramount- as Real Estate has evolved from"back in the day" when we used Metes and Bounds, short sales were unheard of and life may have been a whole lot simpler. 

WHO HOLDS YOUR ESCROW?