Dear Valued ZOCCAM user,
We wanted to inform you of the recent updates to the TREC Rule 535.146 (b)(3). According to the rule, it will now be required that unless a different time period is agreed upon in writing, any trust money, including earnest money received by the broker, must be delivered to an authorized escrow agent (or deposited in a trust account) no later than the close of business of the second working day after the date the broker receives the earnest money.
“A buyer who wants to deposit the money himself should remember Paragraph 5 of TREC contracts, which provides that the buyer shall deposit the earnest money upon execution of the contract. The deposit of earnest money is a buyer obligation once the contract is effective. Like most performance obligations in the contract, time is not “of the essence.” Therefore, the buyer has a reasonable amount of time after the contract is executed by all parties to deposit the earnest money. “Reasonable time” depends upon the circumstances and could be decided in court if there were a dispute over it.”
With these changes, it is even more crucial to have a trusted and efficient source to deliver earnest money to the title company. This is where ZOCCAM can help. ZOCCAM may be used 24/7, which means that orders can be opened at the time the contract is executed. Download the free app & register today!