Realtor® Legal Tip – What happens if the Buyer doesn’t deliver the earnest money within the 4 days required by the REPC?
April 24, 2018
Author: Curtis Bullock
This is a simple but important one. It seems to come up quite often.
The first paragraph of the REPC requires the buyer to DELIVER the earnest money within 4 calendar days after Acceptance. Once that occurs, the broker has another 4 calendar days to DEPOSIT the funds into the trust account.
If the buyer fails to deliver the earnest money within the 4 days, this arguably is a breach of contract. Depending on the circumstances, the seller could potentially cancel the REPC because of that breach according to section 16.1 of the REPC.
Bottom line – make sure your buyer’s comply with the deadline for earnest money delivery to avoid potentially being in breach of contract. Educate the buyer’s on the importance of having earnest money ready to go if they want to make an offer on a property.
(This legal tip is not intended to represent specific legal advice. Each situation is different. Consult your broker or attorney.)