Know your Contract Effective Date Rules.
I am in the process of trying to resolve an escrow dispute which largely involved inspection contingency and contract effective date. In the end I was correct on the 
effective date but this effective date came down to the argument of when all signed/initialed docs were delivered.
Here in Florida many do not realize that 11:59pm is still part of the effective date day. So the argument that they were delivered "after hours" does not constitute next day effective date.
Also on an FHA Rider, the listing agent’s signature was not delivered until the day after
our determined effective day (let’s say the 21st). However according to Florida (per FREC) Contractual law, since the buyer and seller signatures/initials were delivered on the 21st it was sufficient to make the 21st the effective date.
Per our contracts effective date is final delivery of buyer/seller signatures so the fact that the selling agent's signature was added and delivered the 22nd is moot since agents are not parties on a contract. In this case seller did not cancel w/in inspection time but a day later and therefore seller is entitled to the forfeited earnest money.
Now, as the EMD is with a title company and not a RE Brokerage, we may be facing an interpleader action which will certainly out cost the amount of the deposit being held. I am not sure what the final outcome is going to be as we still do not have a final release agreed upon by both buyer and seller but I am confident my seller will prevail.
It was quite a lesson to all involved. It is VERY important to watch your dates.
Comments(0)