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What Happens if the contract falls through and we have Trust Money?
If the contract falls through, and we are holding trust money, we must have an
earnest money release form signed by all parties.
This form is then sent to our corporate office and the funds will be released per
the earnest money release form. This form can be found in Dotloop.
Normally, this check (refund of
trust money) is then sent back
to the requesting agent via the
courier. If other arrangements
need to be made (mailing the
check, or pick up at our
corporate office) just note on
the form or include that
information with the trust
money release form.
If an agreement cannot be reached on the refund of the trust money then the
next step would be to file an interpleader. This is a process of sending the matter
to the local judicial court for a decision on the disbursement. This process can
cost anywhere between $300 to $500.
*If the closing will be happening in less than two weeks of the receipt of trust
money, please request a money order or cashiers check. Our corporate office
must deposit and have 10 business days for the personal check to clear before
disbursement.