Escrow funds - the importance of timely deposit is something that many clients do not understand. As we enter the period of multiple offers once again, it is more important than ever to submit your escrow deposit within the allotted timeframe. Failing to do so can make your contract null and void even if everyone has signed.
Here in Florida, our contract gives a timeframe, usually three days after all parties have signed the contract, that escrow deposits must be received. Whether you are using a title company or an attorney, failure to submit the escrow funds on time can open the door to the seller's ability to back out of the contract if perhaps another offer has been submitted in the interim which is more money.
As a Realtor, it is my duty to make sure that my buyer is on top of the situation and that the escrow funds are received on time. Here in Florida, personal checks or wire transfers are accepted for escrow unless it is a cash deal and the closing is taking place so soon that the personal check might not clear the bank. In that case, escrow must be a wire transfer.
If I am working with the seller, I still need to make sure the escrow funds have been received so my client knows the transaction is indeed moving forward. If not, we can move on to the next offer.
This emphasizes the importance of working with a Realtor.
Comments(9)