Quote:
Originally Posted by retiredguy123
Most experienced buyers would want the earnest money held in an escrow account by a third party, like a title company. As a buyer, I would not allow the earnest money to be held by the seller. Even when a broker sells a property, they use a third party escrow account for the earnest money.
Also, I think it is best to decide on a title company before showing the house, and use their contract documents. If you try to select or switch title companies after you already have a signed sales contract, they may not be comfortable with the contract documents that you used.
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Yeah. I cringed at that one, too. A buyer should never hand over earnest money directly to the seller. And you are also right about the documents. Using a title company for a FSBO costs a whole lot less than a real estate commission. But, even so, don’t be “penny wise and pound foolish” because that could really cause a mess. Use a title company where there will be in-house lawyers.
Boomer