Contract earnest mississippi money receipted

In the old days, like back when Sonny and Cher wailed I Got You Babe, a deposit receipt was slang for a purchase contract. It was called a deposit receipt because it constituted the buyer's receipt for an earnest money deposit.

Yet it was really a purchase contract. Fast-forward to today, and a deposit receipt is the form used to show receipt of an earnest money deposit.

Buyers typically make an earnest money deposit in an offer to buy a home. The earnest money is payable to a title company, escrow company or real estate brokerage. One of those entities then issues a receipt for the deposit, which proves that the buyer actually handed over the earnest money deposit.

This is generally issued after the buyer's earnest money deposit has been deposited into the title or escrow company's bank account.

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It will often contain the following:. If the deposit receipt is handled by the real estate brokerage, it will be entered into the broker's trust account. To deposit funds from a buyer into any other kind of trust account might be a violation of state law, and real estate brokers are not allowed to co-mingle funds.

In California, for example, most of the violations investigated by the Bureau of Real Estate involve trust fund records. This is a reason that some real estate brokerages have elected not to handle trust funds at all, and they often expect a buyer to make the check payable to a title company.

If a real estate broker collects a deposit, it must be recorded in the trust fund record log, even if it is not deposited into the bank. A common way to handle the initial deposit check is to allow the buyer to wire the funds directly to the title or escrow company's bank.

The Facts about Earnest Money Deposits | irexapezoren.web.fc2.com

But a home buyer will still need evidence of that deposit to produce for the buyer's mortgage lender, and this why a deposit receipt is imperative for a home buyer to obtain. The lender will want to see that the original earnest money deposit came from the buyer's personal funds.

If it was paid by a third party on behalf of the borrower, the mortgage lender will require additional documentation. In turn, the mortgage lender will check the borrower's bank statement to make sure the money in the buyer's bank account was not recently deposited from an unknown source.

It's what is commonly referred to as seasoning of funds.

A mortgage lender needs to identify the source of the funds. The funds must be in the buyer's account for a certain time period, after which time the source of funds is not nearly as important.

The lenders look for documentation beyond the deposit receipt to make sure the borrower is using her own money to buy a home. Even Cher got a deposit receipt when she bought land to build a home on the Big Island of Hawaii.

Deposit Receipt Definition and Examples for Real Estate

The buyer of Cher's home received a deposit receipt that reflected the buyer's earnest money deposit. At the time of writing, Elizabeth Weintraub, CalBRE , is a Broker-Associate at Lyon Real Estate in Sacramento, California. Search the site GO. Updated May 29, Get Daily Money Tips to Your Inbox Email Address Sign Up. There was an error. Please enter a valid email address.

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