When entering into a purchase and sales agreement the buyer will deposit money with an escrow agent. The buyer’s deposit, also called an earnest money deposit, is an indication of the intention and ability of the buyer to carry out the agreement. Normally the deposit is applied against the purchase price. In the event the sale does not occur and there is a dispute between the buyer and seller as to who is at fault, the escrow agent will send the deposit monies, after deducting their fees, to the Clerk of Court in an Action of Interpleader. Generally the seller’s real estate agent will act as the escrow agent but if there is no real estate agent involved, then seller’s attorney may act as escrow agent.
If you are considering selling your property without using a real estate agent, then our real estate team at Smith-Weiss Shepard & Spony, P.C. can prepare the purchase and sales agreement and act as the escrow agent for you.