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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Many brokers have a separate account for earnest money deposits which is strictly governed by law. The broker must follow exact guidelines for that account or be faced with penalties as drastic as possibly losing their license to do business.