Christopher Arce-Dale
Escrow Officer & Branch Manager at Glen Oaks Escrow
Published Jul 24, 2023
The Buyer's offer has been written, the Seller accepted, and Escrow is now open! Now it's time for Escrow to collect the Buyer's Earnest Money Deposit - or EMD.
Per the terms of the standard Residential Purchase Agreement (RPA), page 1, Item 3D-1 (and page 4, Item 5A-1) - the EMD is to be delivered via "wire transfer" within 3-business days of the acceptance date, unless otherwise specified.
Note that Escrow cannot accept a personal or cashier's check if the contract calls for the EMD to be wired. Escrow is required to follow the agreed terms as stated within the RPA - accepting funds in a format that was not agreed is a violation of the terms of the agreement. Escrow will contact all parties to confirm if allowing an alternate format of payment is acceptable to the Seller before moving forward.
When writing an offer for your Buyer, it will be important to ask them how they wish to deliver their EMD and if there are any challenges in having funds delivered within the timeframe specified. Some clients may have funds in an IRA or 401k account that require a transfer from the investment account to the Buyer's personal account - and then from the personal account to escrow. This may take longer than 3-business days to accomplish which is why it is important to set the proper expectation not only with your Buyer, but the Seller as well to make sure the terms of the Agreement are met.
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Note that wiring the Buyer's EMD is preferred. This shows a solid interest from the Buyer to the Seller and resolves any issues with the check being returned for non-sufficient funds or being stop paid. Additionally, wiring the EMD directly to escrow allows the escrow process to start right away.
As always, contact me with any escrow questions or concerns. I am "at your service!"
Christopher Arce-Dale | Escrow Officer & Branch Manager
Office: (949)625-6751 | Mobile: (714)906-7131
E-Mail:CDale@GlenOaksEscrow.com
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