Escrow Deposits:
Funds tendered as earnest money in sale or lease transactions must be turned over to Broker/ office staff immediately upon receipt.
Immediately upon receipt of any escrow deposit you must (yes, you, not a clerical staff person) do all of the following:
- Have Buyer or Tenant sign Escrow Deposit Receipt. You can link here for a copy as a “pdf” file, or you can obtain one from the office forms file cabinet. Buyer/Tenant should be given a copy. No escrows will be accepted or banked if this is not done, you will instead be ordered to return the deposit and make other arrangements for escrow.
- Scan to PDF and email to Broker and office staff:
- a copy of the payment
- the first page of the contract or lease memo
- correct file title for the transaction: “address; buyer or tenant/seller or landlord”
- copy of signed Escrow Deposit Receipt
- Copy the check or cash receipt for the file (put in “to Be Filed”…be sure to label it correctly)
- Give the escrow deposit to Broker or office staff.
We recognize that there are cases where we might defer deposit of the check for the three day grace period permitted under FREC regulations. However, in such cases, the checks are to be held by Broker, not by the individual agent so that I can properly supervise their disposition. If there are unusual “instructions” or warnings associated with any check you receive, you are to communicate the circumstances to Broker immediately.
There are no legitimate excuses for failing to email a PDF of the material demanded above at the time you receive the deposit!
Misrepresenting the status of the initial deposit in a transaction: Agents are specifically forbidden to present proposed Sales Contracts, or “Memo to Lease” in which the contract indicates that we have received or are holding an escrow deposit unless and until you have physical possession of the deposit. You may not present such a document to a Seller/ Landlord, a Listing Agent, or the Seller’s Attorney unless and until you have the deposit indicated in the document.
No excuses or exceptions to this rule are permitted including, but not limited to the following tired out losers:
- “I had to do it because I was afraid I would lose the deal!“
- “My buyer promised he would overnight it tomorrow!”
- “The Seller’s agent said it was OK”
- “I needed the commission!”
- “A colleague said it was OK”
- “A black Labrador Retriever told me to do it”
Failure to abide by this directive is misrepresentation. Any agent found to be in violation of this rule will have his/her participation in the transaction involved terminated, another agent will be assigned to wrap it up and no commission will be paid on that transaction. Agents in this company do not practice misrepresentation no matter what they did at your previous place of business. Hopefully, that’s why you are here.
Escrow Deposit Due Dates
You have a duty to account for all funds. A contract will specify when funds are due.
If we are the escrow agent, and funds have not been received according to the due date, you have a duty to inform the seller/landlord (if it is our listing) or the cooperating agent in writing that the funds are not in our possession on the due date.
If we are not the escrow agent, you need to request an escrow letter. Please note: an escrow letter is not due on the due date of the deposit. It may be provided on the same day a deposit is due, but it is not a requirement by law. Florida requirements vary depending on who holds escrow, and who selected the escrow agent. Escrow agents are typically accommodating in providing a letter. If you encounter difficulty obtaining one, contact Broker for guidance.