Legal Lines

QUESTION: I am representing a buyer to a purchase agreement in which the buyer and seller have agreed that the earnest money is to be held by a title company. Is it legal for me to deliver the check to the title company?

ANSWER: YES. Section 339.2512(j)(vi) of the Occupational Code states:

If a purchase agreement signed by a seller and purchaser provides that a deposit be held by an escrowee other than a real estate broker, a licensee in possession of such a deposit shall cause the deposit to be delivered to the named escrowee within 2 banking days after the licensee has received notice that an offer to purchase is accepted by all parties.

REALTORS® should understand that title companies are not subject to the requirements of Article 25 of the Occupational Code and may have their own rules as to how funds will be held and under what terms they will be released. Often title companies will only hold earnest money deposits if the parties execute a separate escrow agreement.

 

From the most commonly asked questions to the MARlegal hotline.  

QUESTION: I am a listing broker and my seller has just recently accepted a purchase agreement. Today, I received another offer for this property. Does license law obligate me to present this offer to my seller?

ANSWER: NO, unless your listing agreement provides to the contrary. Rule 339.22307(5) states:

A licensee shall not be subject to disciplinary action for failing to submit to the seller any additional offers to purchase which are received after the seller has accepted an offer and the sales agreement is fully executed, unless a service provision agreement requires that subsequent offers be presented.

To avoid some type of breach of fiduciary duty claim from a seller-client, REALTORS® who do not wish to present additional offers are strongly encouraged to include a provision in their listing agreement form which expressly states that additional offers received after a binding purchase agreement is signed will not be presented to the seller.

 

The SJCAR Annual Golf Outing is Scheduled for Friday, August 15th, beginning at 11:30 am at the St Joseph Valley Golf Club between Centreville and Nottawa on M86.  
Golf & Dinner: $39.00 per person
Dinner Only: $14.50 per person
Watch for further details. 

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