The motel escrow that I have been in for about a month has gone sideways!
I had a bad feeling about accepting a Bond as an Earnest Money Deposit (EMD). So, I contacted Escrow asking if it was okay.
Once they gave it an approval, I gave it a thumbs up for my Seller client, and we submitted the Executed Offer (PSA) to escrow and then waited.
A week later the Buyer's agent showed up with the Bond that was described in the PSA. He made the deposit.
Then, about a week after that, I get a call from the Escrow Holder. She explained that the Title Company's attorney slapped her on the wrist for allowing a Bond to be accepted as EMD.
She said we needed to change that to a Cash Deposit, or by the end of the Buyer's Due Diligence, the Title Company would be resigning from the Escrow.
SIGH!
What type of mess did I get myself into?
The Escrow Holder said it would be best to cancel the current escrow, open a new escrow, and make a cash deposit.
So, I encouraged the Buyer's Agent to convince the Buyer to cancel; the Seller agreed and for once quickly signed the Cancellation Addendum.
But, the Buyer is now taking her time.
Oh, well.
She might be upset, but it's her own fault for trying to force a square peg into a round hole.
I did write a NEW PSA and included an additional property that was NOT available that she wanted when the first PSA was written. BUT, now I am thinking she probably didn't have the cash to move forward in the first place.
That is just my gut feeling.
So, we are in limbo until the Buyer signs the Cancellation Addendum; AND, signs the new PSA.
If the Due Diligence date comes before that, the title's escrow will resign. The Buyer will be in a legal limbo, but the out for the Seller is they never truly made their EMD according the the Title Company's attorney.
Since this hit the fan, I have learned that back in the 1980's Buyers would put up bonds as EMD's. Then, the Bonds turned out to be worthless; and, it would tie up properties until there was a (legal) resolution.
So, lesson learned.
All I want to do is help my Seller client sell his property for the most money to a willing, able, and capable buyer.
Nothing new there.
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
I had a bad feeling about accepting a Bond as an Earnest Money Deposit (EMD). So, I contacted Escrow asking if it was okay.
Once they gave it an approval, I gave it a thumbs up for my Seller client, and we submitted the Executed Offer (PSA) to escrow and then waited.
A week later the Buyer's agent showed up with the Bond that was described in the PSA. He made the deposit.
Then, about a week after that, I get a call from the Escrow Holder. She explained that the Title Company's attorney slapped her on the wrist for allowing a Bond to be accepted as EMD.
She said we needed to change that to a Cash Deposit, or by the end of the Buyer's Due Diligence, the Title Company would be resigning from the Escrow.
SIGH!
What type of mess did I get myself into?
The Escrow Holder said it would be best to cancel the current escrow, open a new escrow, and make a cash deposit.
So, I encouraged the Buyer's Agent to convince the Buyer to cancel; the Seller agreed and for once quickly signed the Cancellation Addendum.
But, the Buyer is now taking her time.
Oh, well.
She might be upset, but it's her own fault for trying to force a square peg into a round hole.
I did write a NEW PSA and included an additional property that was NOT available that she wanted when the first PSA was written. BUT, now I am thinking she probably didn't have the cash to move forward in the first place.
That is just my gut feeling.
So, we are in limbo until the Buyer signs the Cancellation Addendum; AND, signs the new PSA.
If the Due Diligence date comes before that, the title's escrow will resign. The Buyer will be in a legal limbo, but the out for the Seller is they never truly made their EMD according the the Title Company's attorney.
Since this hit the fan, I have learned that back in the 1980's Buyers would put up bonds as EMD's. Then, the Bonds turned out to be worthless; and, it would tie up properties until there was a (legal) resolution.
So, lesson learned.
All I want to do is help my Seller client sell his property for the most money to a willing, able, and capable buyer.
Nothing new there.
To Contact David Howes try: davidATdavidhowesDOTnet OR; 7 0 2 5 01 9 3 8 8 AND Please #Follow David on Twitter: @DavidAHowes Have a nice day!
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