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12-03-2005, 06:03 PM
| | Registered User | | Join Date: Dec 2005
Posts: 5
| | | Earnest Money Deposit
What is the name of your state? NY
I have a completed contract (signed by all parties) to buy a house. The contract was signed by all parties about 4 weeks ago. An earnest money deposit check was given to the seller's attorney at that time. The check remains un-deposited after 4 weeks. The closing is three weeks away. I am concerned that if the seller's attornet doesn't deposit the check soon, the funds won't be available for the closing. My attorney spoke to the seller's attorney who says he is going to deposit the check. What happens at closing if the funds haven't cleared the bank? Is that a problem for the closing? |
12-03-2005, 07:50 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | Quote: |
Originally Posted by NYBuyer What is the name of your state? NY
I have a completed contract (signed by all parties) to buy a house. The contract was signed by all parties about 4 weeks ago. An earnest money deposit check was given to the seller's attorney at that time. The check remains un-deposited after 4 weeks. The closing is three weeks away. I am concerned that if the seller's attornet doesn't deposit the check soon, the funds won't be available for the closing. My attorney spoke to the seller's attorney who says he is going to deposit the check. What happens at closing if the funds haven't cleared the bank? Is that a problem for the closing? |
**A: yes, you will be in default. |
12-03-2005, 08:05 PM
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Posts: 5
| | | Your answer has me confused. I gave the seller's attorney a perfectly good check for the deposit as per the contract. The seller's attorney has not deposited it. The funds are in my account. Federal Banking Regulations allow the bank to release the funds over two weeks. Any delay in the seller receiving the funds is the fault of their attorney. I have done exactly what the contract requires. If the I have the down payment and mortgage,how would I be in default? |
12-03-2005, 08:06 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
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Originally Posted by NYBuyer Your answer has me confused. I gave the seller's attorney a perfectly good check for the deposit as per the contract. The seller's attorney has not deposited it. The funds are in my account. Federal Banking Regulations allow the bank to release the funds over two weeks. Any delay in the seller receiving the funds is the fault of their attorney. I have done exactly what the contract requires. If the I have the down payment and mortgage,how would I be in default? |
**A: total crap....a perfectly good check is a certified cashier's check. |
12-03-2005, 08:13 PM
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Originally Posted by HomeGuru **A: total crap....a perfectly good check is a certified cashier's check. | That is not required by the contract. The contract states " on the signing of the contract, Purchaser's check payable to the escrowee, shall be held in escrow" The balance of the down payment is required to be a bank check.
Last edited by NYBuyer; 12-03-2005 at 08:16 PM.
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12-03-2005, 08:17 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
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Originally Posted by NYBuyer That is not required by the contract.
**A: not relevant.
*******
The contract states " on the signing of the contract, Purchaser's check payable to the escrowee, shall be held in escrow" |
**A: the word check in the is case stands for certified funds. If there are no funds to negotiate said check then you are in DEFAULT period. You can cite and argue until the NJ cows come home to NY, you are still out in left field. |
12-03-2005, 08:20 PM
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Posts: 5
| | | Can you cite any legal reference or case law that states that an "earnest money" deposit must be a certified check? |
12-03-2005, 08:22 PM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | Quote: |
Originally Posted by NYBuyer Can you cite any reference or case law that states that and "earnest money" deposit must be a certified check? |
**A: yes I can but I have spend enough time with a hard head. I am off to a business dinner. |
12-03-2005, 08:37 PM
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Posts: 5
| | | The ABA Guide to this isssue indicates that how earnest money is accepted is defined by the contract. It can be by personal check, cashier's check, or cash.
You seem to feel that you can convince people of your point by being verbally abusive. Whatever makes you happy. |
12-05-2005, 10:44 AM
| | Senior Member | | Join Date: May 2000 Location: Catatonic State
Posts: 75,781
| | Quote: |
Originally Posted by NYBuyer The ABA Guide to this isssue indicates that how earnest money is accepted is defined by the contract. It can be by personal check, cashier's check, or cash.
You seem to feel that you can convince people of your point by being verbally abusive. Whatever makes you happy. |
**A: and you can continue being in the state of denial and believe what you want to believe. In the end when you finally discover the truth, you will then understand that my post was correct. | |
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