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Notice For Failed Earnest Money Deposit Or Due Diligence Fee

By
Real Estate Agent with Fathom Realty

I sell residential homes in Cary, NC and wonder how would a seller deliver notice to the buyer of his property when he fails to deliver the earnest money or due diligence fee.  Thanks to our local association I now have the answer.  Now if I can get the agents to fill in those blanks on the purchase offer I would be in there.

 

What kind of notice is necessary when the buyer has failed to deliver the earnest money deposit and the due diligence fee?

Release Date: 04/05/2016

Question: We have a fully executed contract, but the time has passed for the buyers to deliver the earnest money deposit and the due diligence fee. When we send a notice to the buyers to deliver cash or immediately available funds within one banking day, does it have to be in an old-fashioned, real paper, writing; or can the notice be an email or a letter that is created through DocuSign? In other words, what means are necessary to provide the buyers with sufficient notice under the standard form Offer to Purchase and Contract (“OTPC”)?

Answer: Paragraph 1(d) of the OTPC does require notice concerning the earnest money deposit and due diligence fee to be in writing. However, paragraph 21 of the OTPC states that any action under the contract, including notices, can be communicated by “electronic means.” Physical paper is not necessary.

Paragraph 21 also provides that notice may be sent “to any mailing address, e-mail address or fax number set forth in the ‘Notice Information’ section” of the OTPC, and that notice may be given to either the party or the party’s agent. Before sending your notice, be sure to double check the Notice Information section to make sure you are sending notice to the right place. 

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