A contract is one thing, an escrow is another.............

By
Real Estate Agent with Maui Life Homes / Metro Life Homes RS-78439 / BRE #01708344
https://activerain.com/droplet/5cGq

A contract is one thing, an escrow is another.............

So many times I've seen the case where a principal and their agent fill out a cancellation of contract, and once it's signed, they think it's all over and done.

Not quite.

What you need to keep in mind is that the contract between a buyer and seller is one thing.  The ESCROW, however, is not one in the same.  In addition to cancelling a contract, you must also cancel the escrow.  Otherwise, escrow does not have the ability to appriopriate funds and or take any remedial action according to the cancellation of the contract.

That works in reverse also.  If you fill out an escrow cancellation form, that does not necessarily cancel the contract.  You need a cancellation form for the contract as well.

Another small thing to keep in mind is that any amendments to you contract do not affect your escrow unless, of course, you notify escrow of the amendment.  Ideally, with enough time to take appropriate action based on the terms of the amendment.

I've seen it often enough where there are credits issued or perhaps a price reduction that is mutually signed by buyer and seller, yet no one has communicated that to escrow, which ends up in a last minute scramble at close of escrow which sometimes results in unecessary drama.

 



Ralph Gorgoglione - Broker / Realtor

Top 3% Realtors Nationwide

Metro Life Homes  / BRE #01708344
Maui Life Homes / RS-78439
(310) 497-9407 / (800) 591-6121  /  Fax:  (866) 470-2717

Web:  metrolifehomes.net  /  Blog:  HomeChitChat.com 
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Rainmaker
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Jeffrey DiMuria 321.223.6253 Waves Realty
Waves Realty - Melbourne, FL
Florida Space Coast Homes

wow Ralph...you hit the nail on the head. I think you point out ( to those who think agents do nothing but make big checks) why this business requires a professional like you!

Jun 09, 2018 07:53 AM #1
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Tammy Lankford,
Lane Realty Eatonton, GA Lake Sinclair, Milledgeville, 706-485-9668 - Eatonton, GA
Broker GA Lake Sinclair/Eatonton/Milledgeville

I'd have to relearn so much in states with escrow.  We don't have that process in Georgia.  We have the contract and attorney orders title and closes. But if a contract get canceled we call or email, but no formal notice must go to closing attorney.

Mar 14, 2019 08:59 PM #2
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Ralph Gorgoglione

Hawaii and California Real Estate (800) 591-6121
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