So much in the world of Real Estate is done digitally. You can tour homes from the comfort of your couch (although it doesn't replace in-person visits because floors don't creak in pictures), and sign offers, addenda, and loan docs on your tablet.
So what about your earnest money deposit? Can you move it digitally as well? Could you make your earnest money deposit via Venmo or ApplePay?
I attended a very informative meeting (digitally!) lead by Jack Carter of The Title Company who answered just these questions the other day. The Title Company is located in Columbia, MD, and is one that I, as an active agent in Howard County and beyond, can highly recommend.
So can you use Venmo, CashApp, ApplePay, GooglePay, or Zelle to make your earnest money deposit?
No.
Venmo and CashApp are intended for peer-to-peer sharing. The user terms prohibit commercial transactions, plus there is a cap on each transaction which is (well) below the typical EMD in Maryland.
ApplePay and Google Pay are backed by credit cards. You cannot make your earnest money deposit with a credit card (but you can use it to pay for items outside of closing, like the home inspection). Credit card transactions can be disputed, it's borrowed money not liquid cash, and debt cannot be put into an escrow account where the earnest money needs to be until settlement (or contract release).
While Zelle is also a peer-to-peer tool, it may become an option for the transfer of EMDs in the future since it's backed by the largest US Banks (BofA, JP Morgan Chase, Wells Fargo among others).
What are the payment options for the earnest money deposit?
You can still write a personal check which must be delivered to the buyer's brokerage or the title company (depending on the agreement) promptly after contract ratification.
You can utilize a service such as ZOCCAM or Earnnest to digitally move your deposit from your bank account to the escrow account.
You can wire your deposit.
A word of caution, especially on the latter. When you receive an email with wiring instructions please verify these before initiating the transfer. There have been incidences of wire fraud and you don't want to be the next victim. It's best to contact your buyer's agent and/or the title company to double-check.
When you decide to work with me, I will remind you of that again when you have your ratified contract in hand - right after a celebratory moment and perhaps a happy dance.
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