Expert: Dick Dennis - 9/27/2006

Question
Howdy!!!
Just a simple question for you please,  Once a buyer presents an earnest money check where does that money go until closing on the property? Does it go into an account at the realty office? To the seller directly? Thank you for your help.
Melody

Answer
The earnest money check is usually made out to the escrow or title company that will be handling the transaction. If it is made out to the realty office, it is made out to that office's TRUST ACCOUNT. They, in turn, will submit it to the escrow or title company handling the transaction.

If the check is made out to the seller, then he/she may submit it to the escrow or title company handling the transaction. Or, if the purchase agreement reflects that the seller was given the deposit then the purchase agreement should reflect that and the buyer's interest reflects that, too.

I do wish you well.

Dick Dennis                dixiedee13@aol.com