Sending Deposit - Send Money Before or After Seller Signs Resale Contract ?

[jjanne]

Hello all, almost finished with the contract process on a resale (signed it as a buyer last night, now waiting for seller to sign). Is the deposit typically sent BEFORE or AFTER seller signs contract? Thank you.

 

[RoseGold]

The software should tell you when it's all done. I would wait to actually send money for a day or two for them to sign.

You'll get it back, but it's a pain and takes time.

 

[john7994]

In my most recent resale transaction (2 weeks ago), I had 7 days to render the deposit after the contract was signed by both parties. In the previous two transactions, I submitted the deposit in parallel to the contract being signed (different brokers)

 

[AstroBlasters]

I’d wire the money after. You will continue to earn interest on the money while it is in your account and it will also lower your stress level if the other party is delayed in returning signed docs.

 

[CastAStone]

I’d wire the money after. You will continue to earn interest on the money while it is in your account and it will also lower your stress level if the other party is delayed in returning signed docs.

100%. I don’t think there’s a typical but I wired mine when I signed and then spent a month and a half wishing that I hadn’t while I waited for the seller to get around to it.

 

[jjanne]

100%. I don’t think there’s a typical but I wired mine when I signed and then spent a month and a half wishing that I hadn’t while I waited for the seller to get around to it.

Oh wow, why did seller delay for so long? Did transaction complete still?
The wire was just the deposit for the contract right (at the start) or was this payment balance at closing?

 

[CastAStone]

Oh wow, why did seller delay for so long? Did transaction complete still?
The wire was just the deposit for the contract right (at the start) or was this payment balance at closing?

It did complete still, yes. I have no idea what took them so long. They managed to get it within the window in the contract but they certainly took their time.

This was the payment balance.

 

[CastAStone]

Oh wow, why did seller delay for so long? Did transaction complete still?
The wire was just the deposit for the contract right (at the start) or was this payment balance at closing?

It did complete still, yes. I have no idea what took them so long. They managed to get it within the window in the contract but they certainly took their time.

This was the payment balance.

I will add that i used to way back in the day process invoices for my business unit and it was unbelievable how little effort some people put into collecting money we owed them. Tens, even hundreds of thousands of dollars would get accrued for months because the vendor couldn’t be bothered to do some basic paperwork.

So the seller doing the same didn’t phase me, it just annoyed me. I’m trying to give you many thousands of dollars!!!

 

[sndral]

I’d wire the money after. You will continue to earn interest on the money while it is in your account and it will also lower your stress level if the other party is delayed in returning signed docs.

Curious why you wired money at the beginning of a resale purchase, the offer/acceptance contract signing point - don’t most people pay that earnest money deposit via credit card & if the seller doesn’t sign the contract & it doesn’t go to ROFR then your deposit just gets credited back to your card doesn’t it?
I’ve only wired money at closing, after ROFR has been waived by DVC.

 

[disney-inspired]

I sent my money as soon as I sent the signed paperwork - I wanted my portion to be completed asap so I didn't have to worry about it.
For one of my contracts, the seller was actually a DISer and we found each other through the Closing Time thread so it closed really quickly after passing ROFR.

 

[john7994]

Oh wow, why did seller delay for so long? Did transaction complete still?
The wire was just the deposit for the contract right (at the start) or was this payment balance at closing?

There are two transactions - the deposit and the remaining balance at closing. I worry less about the deposit - the remaining balance is handled by the title company at closing and recoverable should something go awry (unless they are disreputable) but brokers of any standing will likely not be dealing with those. This assumes you are dealing with a broker and title company.

I did have one instance where it was 45 days between sending my wire for the remaining balance and closing sign-off due to it being an international seller.

 

[jjanne]

Curious why you wired money at the beginning of a resale purchase, the offer/acceptance contract signing point - don’t most people pay that earnest money deposit via credit card & if the seller doesn’t sign the contract & it doesn’t go to ROFR then your deposit just gets credited back to your card doesn’t it?
I’ve only wired money at closing, after ROFR has been waived by DVC.

There are two transactions - the deposit and the remaining balance at closing. I worry less about the deposit - the remaining balance is handled by the title company at closing and recoverable should something go awry (unless they are disreputable) but brokers of any standing will likely not be dealing with those. This assumes you are dealing with a broker and title company.

I did have one instance where it was 45 days between sending my wire for the remaining balance and closing sign-off due to it being an international seller.

ok, thanks @john7994 . For the deposit though, it seems you're not worried about sending this before seller signs the contact? What happens if the seller do not sign the contract?

Just trying to understand if it's a non-issue at all, or if it's just good practice to wait for seller to sign before sending deposit (via credit card).

I am working with a broker and DVC Title & Escrow for this resale.

 

[john7994]

ok, thanks @john7994 . For the deposit though, it seems you're not worried about sending this before seller signs the contact? What happens if the seller do not sign the contract?

Just trying to understand if it's a non-issue at all, or if it's just good practice to wait for seller to sign before sending deposit (via credit card).

I am working with a broker and DVC Title & Escrow for this resale.

I usually put the deposit on credit card - which is refundable if the transaction falls through - as it is on a CC - you can also work with the provider should things also go really awry. For deposits, I am not very concerned. Again, deal with reputable brokers and Title companies - and it should not be an issue.