Monday Morning Realtor® Legal Tip – Don’t make this mistake when depositing earnest money at a Title Company!!
April 10, 2017
Author: Curtis Bullock
I once saw an agent receive a $500 fine from the Utah Division of Real Estate for failing to indicate in writing on the REPC that the earnest money was being held at a title company.
Remember, the standard REPC makes no mention of using a title company in the pre-printed language. The REPC assumes the buyer will deliver the money to their agent, who will then deposit the money into the brokerage trust account.
Having said that, the buyer and his/her agent may decide to have the earnest money held by a title company. No problem. Just make sure to include language on an Addendum that says what title company will be holding the funds and their location.
*There are pros and cons to using a title company to hold the earnest money but that is a topic for another day.