Comments on: Who gets the interest on earnest money? http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/ Seattle's Leading Resource for Real Estate Information Sun, 14 Mar 2010 04:50:12 -0700 http://wordpress.org/?v=2.8.4 hourly 1 By: ARDELL http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-150875 ARDELL Wed, 20 Jun 2007 20:40:27 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-150875 Sounds like it could be another NY person with no "time is of the essence" clause. I say that because he mentioned "agent or the lawyer" and that usually means NY or North Jersey and no time is of the essence until invoked. But that's a guess. Kim, If the finance contingency holds until closing, which it often does on the East Coast vs. West Coast, and the buyer can't get a mortgage, you may not get the Earnest Money. The buyer us often protected if he can't get a mortgage. It depends on the contract, so we can't answer. You need to have someone where you live look at your contract, like YOUR agent and lawyer, not their agent and lawyer. Sounds like it could be another NY person with no “time is of the essence” clause. I say that because he mentioned “agent or the lawyer” and that usually means NY or North Jersey and no time is of the essence until invoked. But that’s a guess.

Kim,

If the finance contingency holds until closing, which it often does on the East Coast vs. West Coast, and the buyer can’t get a mortgage, you may not get the Earnest Money. The buyer us often protected if he can’t get a mortgage. It depends on the contract, so we can’t answer. You need to have someone where you live look at your contract, like YOUR agent and lawyer, not their agent and lawyer.

]]> By: craig http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-150865 craig Wed, 20 Jun 2007 19:50:36 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-150865 Kim -- as an initial matter, you should hit the "Caps Lock" button and use the lower case. In the blog/email world, caps are the equivalent of shouting -- and who likes to be shouted at? I'm never comfortable giving legal advice via the internet, particularly where I have no idea as to the state where the property is located. Most contracts have an attorney's fees provision. I suggest you contact an attorney in your area for a preliminary consultation. If the buyer breached the contract without legal excuse, it may very well be worth hiring an attorney in order to get the earnest money (particularly if it is a large sum). Kim — as an initial matter, you should hit the “Caps Lock” button and use the lower case. In the blog/email world, caps are the equivalent of shouting — and who likes to be shouted at?

I’m never comfortable giving legal advice via the internet, particularly where I have no idea as to the state where the property is located. Most contracts have an attorney’s fees provision. I suggest you contact an attorney in your area for a preliminary consultation. If the buyer breached the contract without legal excuse, it may very well be worth hiring an attorney in order to get the earnest money (particularly if it is a large sum).

]]> By: KIM http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-150862 KIM Wed, 20 Jun 2007 19:39:38 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-150862 MY DAUGHTER HAD A CONTRACT ON HER HOME THE BUYER PUT DOWN EARNEST MONEY AND GUARANTEED THEY COULD SECURE A LOAN IN 45DAYS, THEY THEN ASKED FOR AN EXTENSION, MEANWHILE THEY HAVE SPENT MOST OF THEIR HOUSEPAYMENT ON INSPECTIONS AND MINOR CODE UPGRADES. NO FURTHER CONTACT WITH THE REALESTATE AGENT OR THE LAWYER...THE EXTENTION HAS COME AND GONE. WHO GETS THE EARNEST MONEY? MY DAUGHTER HAD A CONTRACT ON HER HOME THE BUYER PUT DOWN EARNEST MONEY AND GUARANTEED THEY COULD SECURE A LOAN IN 45DAYS, THEY THEN ASKED FOR AN EXTENSION, MEANWHILE THEY HAVE SPENT MOST OF THEIR HOUSEPAYMENT ON INSPECTIONS AND MINOR CODE UPGRADES. NO FURTHER CONTACT WITH THE REALESTATE AGENT OR THE LAWYER…THE EXTENTION HAS COME AND GONE. WHO GETS THE EARNEST MONEY?

]]> By: craig http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-146360 craig Thu, 07 Jun 2007 15:30:58 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-146360 Keith -- that is so incredibly NOT spam -- thanks for the comment. Actually, the issues raised by both your link and Ardell's should not be an issue here in WA. The same rule (APR 12.1, discussed at length in comment #9) applies to funds held by escrow for the loan payoff, as the rule regulates "ALL funds received by the closing firm incidental to the closing of the transaction." (APR 12.1(b) (emphasis added) Therefore, escrow has an obligation to, at a minimum, place funds in the pooled interest-bearing account that benefits the Legal Foundation of WA (aka an IOLTA account). If the funds are in a sufficient amount that will be held for an extended period (like earnest money, but almost certainly not loan payoff funds), then escrow has an obligation to place the funds in a separate interest bearing account for the benefit of the owner of the funds. Keith — that is so incredibly NOT spam — thanks for the comment. Actually, the issues raised by both your link and Ardell’s should not be an issue here in WA. The same rule (APR 12.1, discussed at length in comment #9) applies to funds held by escrow for the loan payoff, as the rule regulates “ALL funds received by the closing firm incidental to the closing of the transaction.” (APR 12.1(b) (emphasis added) Therefore, escrow has an obligation to, at a minimum, place funds in the pooled interest-bearing account that benefits the Legal Foundation of WA (aka an IOLTA account). If the funds are in a sufficient amount that will be held for an extended period (like earnest money, but almost certainly not loan payoff funds), then escrow has an obligation to place the funds in a separate interest bearing account for the benefit of the owner of the funds.

]]> By: ARDELL http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-146212 ARDELL Thu, 07 Jun 2007 04:42:31 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-146212 Thanks Keith, I think the more relevant article is this one, which is referenced, but not linked to, in the link above: http://activerain.com/blogsview/104542/The-Dirty-Little-Secret Thanks Keith,

I think the more relevant article is this one, which is referenced, but not linked to, in the link above:

http://activerain.com/blogsview/104542/The-Dirty-Little-Secret

]]> By: Keith Jeppson http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-146201 Keith Jeppson Thu, 07 Jun 2007 03:43:48 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-146201 I know it's a different state but there's some interesting comparisons on ED's posts here http://title-opoly.squarespace.com/title-opoly/2007/5/24/one-last-time-the-dirty-little-secret.html and on AR. Sorry if you consider this spam just delete the comment. I thought it might add to your great post. I know it’s a different state but there’s some interesting comparisons on ED’s posts here http://title-opoly.squarespace.com/title-opoly/2007/5/24/one-last-time-the-dirty-little-secret.html and on AR.

Sorry if you consider this spam just delete the comment. I thought it might add to your great post.

]]> By: craig http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145776 craig Wed, 06 Jun 2007 00:00:05 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145776 Honestly, I have no idea. Check out the web page for more info. Honestly, I have no idea. Check out the web page for more info.

]]> By: Rhonda Porter http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145771 Rhonda Porter Tue, 05 Jun 2007 23:53:05 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145771 Back in my escrow days at the title company...I always suspected your first answer! But, if it's providing funds for low income people, are attorney's paid from the foundation or do they work pro bono for the low income people? Back in my escrow days at the title company…I always suspected your first answer! But, if it’s providing funds for low income people, are attorney’s paid from the foundation or do they work pro bono for the low income people?

]]> By: craig http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145769 craig Tue, 05 Jun 2007 23:47:48 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145769 Ooops -- I noted the true nature of the Legal Foundation of WA in my initial lengthy comment, which I managed to delete before posting (another reason why blogging is so time consuming :() Ooops — I noted the true nature of the Legal Foundation of WA in my initial lengthy comment, which I managed to delete before posting (another reason why blogging is so time consuming :( )

]]> By: craig http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145768 craig Tue, 05 Jun 2007 23:45:58 +0000 http://raincityguide.com/2007/06/05/who-gets-the-interest-on-earnest-money/#comment-145768 Rhonda -- it's the name of a monthly meeting at various downtown drinking establishments for attorneys only... ;) Actually, as I noted in my LENGTHY comment, it funds legal services for low income people: <a href="http://www.legalfoundation.org/" rel="nofollow">Legal Foundation of WA</a> Rhonda — it’s the name of a monthly meeting at various downtown drinking establishments for attorneys only… ;)

Actually, as I noted in my LENGTHY comment, it funds legal services for low income people: Legal Foundation of WA

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