What if the parties to a real estate contract for the conveyance of real estate want someone other than a broker to hold earnest money or other trust funds?
A. The parties or an attorney must prepare an escrow agreement which states the terms and conditions under which another person or entity will hold and disburse the funds. A broker may NOT draft this agreement. The funds must then beheld by the other person or entity (the broker may NOT be custodian of the funds). The funds, and the interest, if placed in an interest-bearing account, will be paid to the party designated in the escrow agreement.
Related Questions
- What if the parties to a real estate contract for the conveyance of real estate want someone other than a broker to hold earnest money or other trust funds?
- When may an earnest money check made out to a broker not be deposited in a trust account?
- Can a Buyer on a Real Estate Contract Be Held Liable Beyond His Earnest Money Deposit?
