Contract Deposit Question

[OlafSchmolaf]

Just a quick question...I think. Is it customary for deposits on contracts to be cashed by title company/attorney office while going through ROFR? We've had our first contract taken and the check was never cashed, just held. This time around its been cashed. In buying previous property I honestly don't remember how its gone down. I guess I'm wondering if that means it passed ROFR and we haven't been notified yet or just common practice?

 

[amccu18007]

Our title company took the deposit early on both of our contracts. They did both pass but it passed much later( about two weeks). We used both First American Title and Duncan Title. Others experiences may be different.

 

[OlafSchmolaf]

Our title company took the deposit early on both of our contracts. They did both pass but it passed much later( about two weeks). We used both First American Title and Duncan Title. Others experiences may be different.

Thanks for your feedback.

 

[Matty B13]

We used a credit card for our Fidelity contract, so it was taken right away and deposited. I think it depends on the title company and broker. I wouldn't worry, losing their license isn't work the $1k.

 

[aokeefe]

I put my deposit down on a credit card and they processed it a few days after going into ROFR- it was a definite tease as I thought it passed ROFR so quickly! (later it did pass)

 

[KAT4DISNEY]

I've had it happen both ways in the past.

 

[Smilelea]

Ours stayed in "pending" with the CC until we passed, then it moved to an actual charge.

 

[icc2515]

I would think that the title company should cash the check right away. This gives the check time to clear the bank while you are waiting for ROFR. If they waited till you passed ROFR and the estoppel came right away (like it should). You would then receive the closing documents that same day (like you should). Then you would send them back the same day overnight. The seller would of course send theirs back that same day. You could bounce the check to them. Now of course this whole process takes weeks and weeks to happen and they could wait until after ROFR to cash the check.