Broker asking me to put down deposit prior to diligence - standard?
Is this standard? Seems non-standard to me. If you've successfully negotiated out of this, would love to learn how.
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by a searcher
from Harvard University - Harvard Business School
in Portland, OR, USA
in Portland, OR, USA
2yrs ago
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by an investor
2yrs ago
from United States Naval Academy in Colleyville, TX 76034, USA
from United States Naval Academy in Colleyville, TX 76034, USA
It probably depends on the deal, but just as important as if the deposit is made is where the deposit is made.
I was negotiating a deal with one broker that was asking for an earnest money deposit. I didn't have an issue with it so I offered to deposit it with my attorney or an escrow company selected by my attorney. Broker said they would only accept it if I deposited it with the broker's affiliated escrow service because, and these exact words, "I need to control the money." Uh, yeah, no.
I was negotiating a deal with one broker that was asking for an earnest money deposit. I didn't have an issue with it so I offered to deposit it with my attorney or an escrow company selected by my attorney. Broker said they would only accept it if I deposited it with the broker's affiliated escrow service because, and these exact words, "I need to control the money." Uh, yeah, no.
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by a professional
1yr ago
in Richland, WA, USA
in Richland, WA, USA
Not standard but more and more brokers are asking for it. Especially so in large markets like CA and FL, and if they came from a real estate background. I wrote a newsletter article on this exact thing and how to address it. Link here if it's helpful for anyone: redacted
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