3 Escrow Pitfalls in Palmer Ranch
Avoid These Costly Escrow Mistakes in Palmer Ranch
Quick Answer
In Palmer Ranch, failing to deposit earnest money on time can lead to contract termination and loss of your deposit. Florida Statutes § 651.033 mandates strict timelines for escrow deposits, requiring brokers to deposit funds within three business days. Missing this deadline could mean losing thousands, especially if your earnest money is 1% to 3% of the home’s price. Discovering this too late can force you into legal disputes or even losing the property. Call me at 941.400.8735 or reach out directly to Michael Renick – I’ll share my approach with you.
What Actually Breaks Deals in Florida
Wire Fraud Risks
Wire fraud is rampant, with hackers sending fake emails that mimic real estate agents, leading to stolen funds. This is a significant issue during the escrow process, where buyers are required to wire large sums for down payments or closing costs. One client nearly lost $50,000 when they received fraudulent wiring instructions just two days before closing. If this is uncovered late, it can delay closing and even cause the deal to collapse.
Purchasing a home can be a time-consuming and stressful venture: visiting prospective homes; identifying the pros and cons of each property; deciding which properties are right for you; final visit at these properties; making an offer (and counteroffer); dealing with the Sellers realtor; reviewing the Agreement For Sale; finding an attorney; finding a home inspection company; and acquiring home and flood insurance. Then the difficult task starts, working with a bank and filling out all the paperwork (Ugh!). Mike and Eric were very helpful throughout the process and kept us informed of our requirements and responsibilities for each deadline.
– bshea20047, Zillow Review
Deposit Release Disputes
In Florida, title companies require clear written instructions from both parties before releasing escrow deposits. Without matching instructions, funds may be interpleaded with the clerk of courts, leading to legal action and potential loss of funds. I once witnessed a deal fall apart because the buyer assumed the deposit would be automatically refunded after a failed inspection. When this misunderstanding is realized too late, it can result in costly legal battles and lost deposits.
Where It Usually Blows Up
The transaction stage where these issues often surface is during the final days before closing. This timing is brutal because buyers and sellers are usually focused on moving logistics and finalizing financing, leaving little room for error. When problems like wire fraud or deposit disputes emerge at this stage, buyers risk losing their earnest money and sellers face delayed closings, which can disrupt their own purchase plans.
What I Tell Clients Before They Risk Money
- Verify Wire Instructions: Always confirm wiring instructions directly with your agent or title company before transferring funds.
- Understand Escrow Timelines: Know the exact deadlines for depositing earnest money to avoid contract termination.
- Secure Written Agreements: Ensure both parties agree in writing on deposit release terms to prevent legal disputes.
- Check Title Company Requirements: Verify what documentation the title company needs for a smooth closing process.
- Prepare for Contingencies: Have a backup plan if inspections or financing fall through to avoid losing your deposit.
Let’s continue this conversation.
Call me at 941.400.8735 or schedule a 15-minute call. I’ll tell you what I would look for.
Call 941.400.8735 or Schedule a Call
Questions Clients Actually Ask
What happens if I miss the escrow deposit deadline?
Missing the escrow deposit deadline can lead to contract termination and loss of your earnest money. Florida Statutes § 651.033 requires brokers to deposit funds within three business days, and failing to meet this can result in losing thousands of dollars and the property itself.
How can I protect myself from wire fraud?
To protect yourself from wire fraud, always verify wiring instructions directly with your real estate agent or title company. Hackers often send fraudulent emails that mimic legitimate parties, so confirming details over the phone can prevent losing large sums of money.
Team Renick provided great service when we used their expertise to purchase our condo at Seaplace. We could not have asked for better service, and professionalism throughout our experience. They were always available to answer questions and guide us through the maze of our real estate transaction. Seamless and wonderful personal service was provided by Mike and Eric. We could not imagine using anyone else for the sale or purchase of a property on Longboat key.
– Paul Gold, Google Review
What To Do Right Now
Request a copy of the escrow agreement from your title company to understand the specific terms and requirements for your transaction. This document will outline the timelines and conditions for deposit releases, helping you avoid costly mistakes.
Get my monthly Market Brief — I track what is actually happening in Florida: pricing, inventory, insurance problems, and deals falling apart. Subscribe here
To learn more about Michael and Team Renick:
To search for local properties:
https://search.teamrenick.com/
To read more about what Michael shares with his clients:
