I understand that when making an offer on a house, it's a requirement to put down some money ($1000 or 1%) to back up the offer. I know that the check will be made to an escrow company and not to the seller. The seller wants to sell the house by himself so he does not have an agent. I'm a buyer and I do not have an agent either. I'm in the process of shopping for a mortgage. My question is who gets to choose the escrow company (seller, buyer, agent or lender)?
Thank you,
Kenny
2007-02-25 11:57:24 · 4 answers · asked by Anonymous in Business & Finance ➔ Renting & Real Estate
This is covered by your state law. Normally the buyer makes the decision and in some states the seller who attempts to steer the buyer toward their settlement company has comitted a violation of state law. Also, there is no law that says you MUST give a monetary consideration to the seller in the form of earnest money. You can give a promissory note, you can give something else of value. I once put an offer in a house where the seller needed to have work on the electric and I had my electrician come to the home and my offer to purchase the earnest money was the cost of that service call.
Also you can use a check but give the title company that you choose instructions not to deposit the check until all contingencies like financing, home inspection, etc. have been removed by you. In essence you gave a promissory note for earnest money.
I hope this helps you.
Good Luck
2007-02-25 12:04:16 · answer #1 · answered by teenriodoll 3 · 0⤊ 0⤋
I believe any party can chose. If you have a preference you should make it known up front.
If your looking for help with financing I can help you with that.
In my experience if there is no realtor involved the buyer and seller normally let me (the mortgage broker) pick the title company, appraiser, survey company, and so forth.
2007-02-25 12:18:12 · answer #2 · answered by Anonymous · 0⤊ 0⤋
Buyer
2007-02-25 12:21:15 · answer #3 · answered by Anonymous · 0⤊ 0⤋
This is why people should use agents. You all say we are useless and out to just take 6% but selling is not as easy as it seems. Anyway, a simple step like this should be a cake walk, if this cannot be decided, its only going to get harder as you go.
Good luck,
For the answer,
Hire a Realtor.
RE Agent,
Remax
2007-02-25 13:32:19 · answer #4 · answered by frankie b 5 · 0⤊ 1⤋