Who is your real estate agent?! Are they a seasoned professional that is meticulous about the contract, its terms and timelines, or are they a family friend or relative and you felt obligated to give them the business?
You probably think "What's the big deal? I will find a house that I like, and let Miss Family Friend get the commission." Well, there is a lot that can go wrong!
For instance, if your family friend agent is a part time agent, or not fully versed in following the terms of a contract, or lazy, you can lose all of your escrow deposit! For instance, if that agent doesnt remind you when the second deposit is due, and you fail to deliver the money into escrow on time, you are in default. Granted, most reasonable sellers and listing agents will let you move forward and close on the deal, but the big issue comes into play when you try to get out of the contract due to being rejected for financing, etc. Once you are in default of the contract, and the listing agent notifies you of this, you can lose all of your other rights to get out of the contract without losing your escrow deposit. That is a very scary situation to be in!
So next time you think about giving your business to a family member or a friend, make sure that you look beyond your personal relationship and focus on their ability to keep your deal and your money safe!
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