Back-up offer and earnest money deposit

kansasmomMay 11, 2009

About 3 weeks ago we submitted a back-up offer on a house along with the $1,000 earnest money deposit (standard for our area). As far as we know, the sale of the house (to the other buyer) is still scheduled to go through this week. Just last week, our earnest money check was cashed! I thought that the sellers couldn't deposit our check unless they had accepted our offer. Does anyone know if the seller can deposit earnest money from a back-up offer when they still have the orignal offer under contract?

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blueheron

I thought the real estate agent kept the check in escrow and returned it to you if the sale went through.

    Bookmark   May 11, 2009 at 8:15PM
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kansasmom

Sorry, I should have been clearer. I wrote the check to the real estate company, so it was deposited to an escrow account (I assume). Previous to this, we made a back-up offer on another house. The seller's agent on that house held the check, but did not deposit it to an escrow account. My questions is can the seller's agent deposit the check and hold the money in escrow even though my offer is only a back-up offer?

    Bookmark   May 11, 2009 at 10:02PM
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ncrealestateguy

A COPY of the check is all the buyer needs to present with an offer, until a contract is executed. Once the contract is executed, the agent has 3 days to get it into the escrow account.
You should have kept the check until contract. If you did hand over the check, the agent has no choice but to put it into escrow. The first agent should not have kept hold of a clients check for such a long time, w/o depositing it into an escrow account.

    Bookmark   May 12, 2009 at 6:53AM
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