Deposit Money is Rarely Refundable, Buyers Need to Understand

Happy Friday Red Rock Agents,

Here we are at the end of February already. It seems that time just flies by and before we know it the month is over. So, now you can plan on letting all your clients know that Daylight Savings is just around the corner. Maybe give them some batteries for the smoke detectors. As crazy as the market is right now it still pays to reach out and touch your clients.

A few interesting items came across my desk this week I want to share. Buyer wants to build a new home and the builder wants some deposit money to go hard up front. The buyer has the “Subject to Sale Addendum” in the contract, and they have it on the market. Question is “What happens to the deposit money if the buyer’s home doesn’t sell”? Most builders have their own contract, and in said contract is a distinct separation between earnest money, and deposit money. Most of the time deposit money will go hard at acceptance or after a design center visit. It is especially important for our buyers to understand that, and it’s our responsibility to make sure they do. Deposit money is rarely refundable.

I addressed this next item a few weeks ago but want to remind all agents. Earnest Money checks DO NOT need to have a copy made and sent to the listing agent. Nowhere have I seen a rule stating that it’s needed. In the world of wire fraud, I feel it is a liability to send other people's personal banking account information across the web. We send the receipt of earnest money to the listing agent, and that is all they need. If you get a push back from the other agent, ask them to have their broker call me. We are handling other people’s money and it needs to be handled as secure as possible. Please don’t send copies of checks.

With the Parade of Homes just finishing up in St. George I want to go over some of the rules I saw breached. Agents can’t gather information for a development and send it or hand it out as their own, without expressed written permission from the developer. It’s not a matter of asking for forgiveness, you very much need to ask for permission. If you’re told no, don’t just do it anyway, it will lead to trouble and it’s just poor form for agents to act like that. We need to maintain our professionalism in all aspects of business. It’s often the little things people notice. If you have questions about anything please call Allen, Michelle, or me. We’re here to help, because it’s what we do.

Please have a great weekend and be safe out there,

‍