Who holds the earnest money deposit

Earnest Money

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How to Protect Your Earnest Money Deposit

Highest rated Recent Oldest. Fri Jan 16, My husbands owes me money and wants to put it in a escrow account 20k so I can rent an apartment for myself and our 2 children. We want to separate I want to know should I accept this and go ahead with agreement. The money wil be handle by the lawyer to pay my rent.

Can the owner freeze it at some point?

This is his lawyer who will be dispensing the money to my landlord. Is this guaranteed I mean what if the account is frozen, or dispense money stops. At this point I want to agree, Im asking as well for 10, cash for a car and bills for 6 months since Ive never worked in the 6 y marriage. I want to sign it but I want to know if is safe to accept the escrow part. I would rather my husband pays me the money cash ,but he wants to put it that way since I need and apt, I left the marital house insetead of kicking him out for his verbal abuse.

So he wants me to drop the restraining order and leave his house where he handles his business from there. Tue Mar 12, Hi Kent It really doesn't matter who holds the escrow because it can not be released until all parties agree to it. It is easier if the Buyers attorney holds it because they are the one that writes the checks at the closing.

Gina Chirico , Agent, Fairfield, NJ. Thu Oct 22, If you write up the contract and the seller never agrees to or signs it -- your original check is returned to you. Now the initial earnest money deposit and can either be held in the brokers account until closing or in attorney review, the attorneys may change it to be held in one of the attorneys accounts usually the seller's but I have seen the buyer's attorney hold the money as well.

If that's the case, the broker will turn the money over to whichever attorney is specified in the changes of the contract. The second deposit typically due 10 days after attorney review concludes can be handled the same way If you are not working with an agent but looking to buy in the Livingston area, I work out of the Livingston office and would be happy to help you with your home purchase or with any questions you may have.

Gina Chirico, Sales Associate Prudential NJ Properties ext office cell Gina. Hi Kent - fellow Livingsotnite! Our standard contracts are written showing the Selling agent's company as holding the deposit earnest money initially.

Once the contracts are signed, and the 3 day attorney review begins, the attorneys may change that, and have usually the seller's attorney hold the money instead. It can vary, but at that point, it is decided by the attorneys. Debbie Rose Prudential NJ Properties. George Walsh , Agent, Summit, NJ.

Hello from a fellow Livingstonian is that a word? The answer to your question is "it varies" and "it depends. First, there is no hard and fast rule or regulation or law about who holds the escrow except as applies to the rules of a legitimate escrow account. You as a buyer may find that a seller insists that the escrow be held by the seller's attorney or possibly the seller's broker. Often the intial good faith deposit will be in the buyer's broker's esrow account until the contract is finalized.

Then it may be requested that it be transferred to the seller's attroney escrow account. Since the earnest money ultimately is intended to transfer to the seller, having the seller's attorney hold the deposits is quite common. There could be certain circumstances in which you, as the buyer, may wish to have your attorney hold a deposit perhaps and you should discuss this with your attorney before you make an offer to purchase. I hope this helps you.

Shouls you have any additional questions about the buying process in NJ please feel free to contact me at George GWalsh. Joseph Calla , , Hallandale Beach, FL. Hello Kent, The earnest money can be held actually by anyone that Buyer and Seller agree upon. In a normal real estate transaction it is held in your real estate agents broker escrow account.

However, real estate companies are not required to hold an escrow account. Therefore you may want to place it with your attorney or title company if you are not using an attorney.

Hi Kent, the earnest money is held in escrow until closing, either with your realtor's brokerage, your attorney, or the seller's attorney. Where the deposit monies will be held can be ironed out in attorney review, and if it is with one of the attorneys, the initial deposit can easily be moved to the attorney trust account.

Best, Jeannie Feenick "Unwavering Commitment to Service" Search the MLS at http: Who gets the earnest money? Buyer backs out, who keeps the earnest money?

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