Earnest Money Disbursement from a disputed
T&R: If you have a contract that terminates and you
cannot get BOTH parties’ signatures on the Mutual Agreement to Disburse the
Earnest Money, follow the following procedures:
- Regardless if the termination is based on a
contractual contingency or by default, if you do not get both Buyer &
Seller signatures on the “release” then the Earnest Money is officially “in
dispute” and the following procedure applies
- GAR (1 form) - T&R is on 1 form
- RE Forms (2 forms) - Termination is on
"Notification" form & Release" is on "Release of
Trust Funds" - you need BOTH these forms to T&R a transaction
using the RE Forms.
- The termination of any contract is
UNILATERAL; the release of the earnest money is BILATERAL & requires
agreement by Buyer and Seller.
- Upload the signed T&R to your transaction
in Paperless Pipeline even if it is not fully executed. Write a note in Paperless Pipeline that
this Earnest Money is in dispute
- The compliance broker will send the
information to a Broker for review and interpretation
- This Broker may contact you for additional
information & supporting documentation, co-op agent & client
email addresses, mailing addresses, etc.
- The Broker will then write the required “10
Day” letter per the contract
- Earnest Money will be disbursed pursuant to
the Holder’s 10 Day interpretation letter
