Profile picture for Coach 2

"Blank Check" to Make an Offer? I know is not right so...

...what should I write on it? Just verifying, first my realtor asked for a blank check, now he says, he didn't mean that, now he says he needs a check that can't be cashed.
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August 30 2011 - US
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Profile picture for B Mike West
Something is odd here.  I don't think we have enough information to understand what is going on.  I would ask your agent to explain in detail until you understand fully and are comfortable with his plan--BEFORE you write any check. If you are still not comfortable talk to his broker and see what they have to say.

 I usually have my buyers make the check payable to the Title/escrow company that we intend to use for the escrow.  That way, if the offer is not accepted there is not escrow, the check is useless and the buyer is protected. 
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August 30 2011
As a Buyer, when you submit an offer, generally speaking, the Seller expects to see, what is known as a "Good Faith Deposit", meaning that you are submitting the offer in good faith and essentially, putting your money where your mouth is. 3% of the purchase price is the generally accepted deposit.

When writing an offer, the buyer's agent will ask you for a 3% deposit. It can be made payable to the brokerage the agent respresents or you can make it payable to the escrow company you want to use. I do not ever recommend leaving the payable line blank, it's just too risky. The agent then will make a copy of the check and send the copy with the offer. The original check then is held, uncashed, in the Broker's Trust Account, until either the offer is accepted and then deposited into escrow or returned to the buyer if the offer is rejected.

These days, the real check is not submitted with the offer because so many offers are faxed to the listing agent and offers are not presented in person by the buyer's agent.
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August 30 2011
The agent should have had the check made payable to either escrow or a company trust account. I would look into it
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August 30 2011
I believe your agent needs a check for the earnest money deposit.  The check itself is not necessarily going to get cashed, which is probably why your agent phrased it like that.

The best way to do it is to write out your deposit to "Escrow TBD (to be determined)" or to your agent's brokerage, e.g. ABC Brokerage.  Nothing will happen to the check until an offer is accepted anyway, and in that case, you'll likely be writing a new check out to whoever the escrow company is.
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August 30 2011
 
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