4871 Palm Coast Pkwy NW #2
Palm Coast, FL 32137
Phone: 386-246-3131
FAX: 386-246-3162
4871 Palm Coast Pkwy NW #2
Phone: 386-246-3131
Today I am going to talk about something very unpleasant that occasionally happens in our business; Escrow Disputes.
Escrow Disputes happen when a sale falls apart and the buyer and the seller each want the deposit. This is one reason most Brokers don’t have an escrow account. Depending on who is holding the deposit, will determine how the escrow will be disbursed. No matter who is holding the deposit, the broker cannot release the deposit. If the broker is holding the deposit, the Florida Real Estate Commission (FREC) needs to be notified within 15 days of the dispute.
Then the broker has 30 days from the time of the dispute to tell the FREC how it will be cleared. Brokers have a choice. Mediation, Arbitration, Litigation, or Escrow Disbursement Order. These options are typically free or inexpensive. Now, if the Title Company or an Attorney is holding the funds, they are not subject to FREC rules. Typically, they resolve their issue through litigation. The prevailing party gets the escrow and the non-prevailing party pays for the litigation. Again, no matter who is holding the escrow, the broker’s hands are tied and cannot disburse the funds. This may make either or both the buyer, and the seller upset. Thankfully this is a rare occurrence and most sales end in successful completion and all are happy in the end!
If you would like more information contact me. I’m Ric Giumenta. You can have a good day or a bad day. It’s your choice. Make good choices.
See you next time!
24 May 2021
I just did some work on some rental properties and my home, and I hired a few contractors to do the work. I’ve experienced horrendous customer service. What do you consider good customer service? In our business customer service is what we have to se...
17 May 2021
Ok, stop me if you’ve heard this one... A day before closing, a man and a woman go into a bar to conduct a walk through. The man says to the women, “Where are the washer and the dryer?” The woman says “I don’t know, they must have gotten clean away!”...
11 May 2021
In my classes I teach that as soon as we get our license, we are operating as Sole Proprietors with our Independent Contractors contract under our Broker. Many have realized that this might not be the best entity to work under. Many sales associates ...
03 May 2021
How important is getting a listing at the right price, the right terms, and the right time for marketing? Well, it’s very important, in fact, it’s a critical mix necessary to have a listing sell. Do we want to get listings or do we want to get listin...
26 April 2021
Communication is a critical skill necessary for sales associates in order to succeed. We can’t listen to respond; we must listen to understand. The elements of a good communicator include, empathy, patience, flexibility, and reward. Empathy is unders...