Real Estate Never-Never Land

One of my readers and a good friend sent me an email the other day about a listing agent: “Can a listing agent tell you what contract form to use, where to place the escrow  and other requirements?”

QuestionAs far as I can remember, if the listing is a specific type, such as a piece of vacant land, there are forms for just that type of contract that address the type of property. As for where to place the escrow, it is obvious that that listing agent may have had problems before with escrow deposits.  Maybe the deposit was supposed to have been placed with an attorney or title company and the possibility was that the deposit could have been late or worse yet, never deposited.  So if the Buyer defaults, the Seller has no recourse to take the deposit as it was never made.  Also proof of funds: that the buyer is financially capable of making the purchase.

Although I am from Miami and we see all kinds of things here, I cannot remember a time that I didn’t receive proof of funds in the offers I have received.  So tell me, all my readers out there in Real Estate Never-Never Land, what do you see and think in relation to question sent to me?  Is this a head banger?

Until next Monday, be good to each other…be REALTORS.

Monday Mornings With Matey







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2 Responses to Real Estate Never-Never Land

  1. SanibelSusan says:

    On Sanibel & Captiva Islands, we rarely – if ever – see proof of funds, but we almost always see strong (10% deposits). The saying is “if a buyer can afford the $6 bridge toll to get here, they can afford to buy.” Of course, we know that’s a joke & probably why our deposits are big ones. In a resort environment, buyers often are “here today, gone tomorrow”, so we want to be sure their intentions are serious. Even so, we have had them walk away from deposits as high as $70K on Sanibel & $120K on Captiva. (P.S. We also often see suggestions on which contract forms to use & the name of the preferred escrow holder/usually the company that will handle the closing.)

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