May. 27, 2008 - Who do you make your Earnest Money Check Payable to?
Someone asked this question today, so I thought maybe everyone would like to know that answer.
"Who do you make the Earnest Money Check Payable TO?
The Earnest Money check is made payable to "the escrow holder". Here in the Seattle Area that is usually either the Escrow Company OR the Brokerage of the Agent for the Buyer. Rarely is it ever the listing brokerage.
The check is most often made out to the escrow chosen in the contract on the day that you make an offer and sign the contract/offer. "Closing Agent" or "Selling Broker" are the two options on line 7 of the standard contract. "Selling Broker" is the opposite of "Listing Broker".
More and more, real estate companies are closing out their "Trust Accounts" and using the "Closing Agent" as the place where your Earnest Money is held.
You, the buyer, fill out the contract first as "the offer", so you, the buyer, designate on line 11 your choice of Closing Agent, and write out the check payable to that Company.
That check is then held by your agent until there is a final agreement and contract, and escrow is opened. If the seller changes the Closing Agent, and you agree to that change, the original check is voided and a new check needs to be written to the Closing Agent as agreed to in the contract.
Ardell, in Nashville TN, generally the check goes to the listing broker. We all talk about it as strange. Why would you turn over your buyer's money to the seller's broker, we wonder. But, traditionally, that is how it is done on most transactions here. HUD sales do specify that the buyer's broker holds the earnest money, but no others.
When I worked on the East Coast, we did it the same way. I think that is because seller chooses Title Company (same here) but Title IS closing agent on the East Coast. On the West Coast we have Escrow Companies as closing agents, and Title Company and Escrow Company do not need to be affiliated with one another.
Seller chooses Title Company. Buyer chooses Escrow Company and Earnest Money is made payable to buyer's chosen Escrow Company in my contracts.
There's no winning on that one. If they go down people go under and upside down, if they go up people can't afford a home. It's a lose-lose proposition.
Jun. 3, 2008 - RE: Who do you make your Earnest Money Check Payable to?
Posted by Keahi Pelayo
In Honolulu, our earnest money deposits are made to escrow. As a broker, we maintain a trust account, but I have never seen a check made payable to us.
Aloha,
Keahi
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Jun. 12, 2008 - RE: Who do you make your Earnest Money Check Payable to?
Posted by Doug Quance
Here in Georgia, it is more often that the selling broker holds the earnest money... though in many cases - particularly REO properties - the listing broker holds the money.
There are many instances where I will suggest to my buyer clients that they make the earnest money payable to the listing broker as part of our negotiation strategy.
Apr. 17, 2009 - RE: Who do you make your Earnest Money Check Payable to?
Posted by Joel R.
The money typically goes into an escrow account held by the selling broker, but this is largely a matter of local custom or it can be negotiated. The buyer usually does not receive any interest on the earnest money being held in escrow.Earnest money can be issued in check in addition to this Credit cards can actually be quite useful. You can use one to open your door if you have a cheap enough lock and you get locked out. They also can be used for shot glass coasters. You could even use credit cards to gap spark plugs, in a pinch if it's the correct distance. please visit for additional info. http://personalmoneystore.com/moneyblog/2009/04/09/payday-loans-credit-card-cash-advances/
Apr. 17, 2009 - RE: Who do you make your Earnest Money Check Payable to?
Posted by Mark E.
The money typically goes into an escrow account held by the selling broker, but this is largely a matter of local custom or it can be negotiated. The buyer usually does not receive any interest on the earnest money being held in escrow.Earnest money can be issued in check in addition to this Credit cards can actually be quite useful. You can use one to open your door if you have a cheap enough lock and you get locked out. They also can be used for shot glass coasters. You could even use credit cards to gap spark plugs, in a pinch if it's the correctdistance. http://personalmoneystore.com/moneyblog/2009/04/09/payday-loans-credit-card-cash-advances/
ARDELL
DellaLoggia
On Seattle Real Estate including Kirkland, Bellevue, Redmond, Green Lake and most areas around Lake Washington North of Downtown Seattle.
Phone: 206-910-1000 - Mailto:Ardell@RainCityGuide.com
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