As the closing agent, how do I handle the money received and/or disbursed from the closing escrow transaction?
In the event your Buyer is the one doing an exchange that means that American Exchange Corporation is already in receipt of exchange funds. You must contact our office to see if the initial deposit is coming from us as Intermediary or if the Exchanger/Buyer will be depositing it directly. Often the Buyer will need to come up with money in addition to the exchange proceeds to complete the purchase. If American Exchange Corporation gives you the initial deposit, you should show us on the receipt and your original Closing Escrow Instructions. However, most of the time, you will be receiving an initial deposit directly from the Exchanger/Buyer and they will be shown as the Buyer until American Exchange Corporation has been substituted in as Buyer at a later date. CAUTION: In this event, your closing statement will need to show a line item as “return of initial deposit to Exchanger” in order to clarify to IRS that the Exchanger did not have any constructive receipt of funds. Furthermore, an
