|
Can I use proceeds from the sale
of my Old Property for the earnest
money deposit on my New Property?
Yes, but there's a trick to it.
Here’s how it's done:
First,
make sure that the purchase contract
for the replacement property has
already been assigned to the intermediary.
Next, make sure the escrow instructions
state that should the contract
be terminated, the earnest money
will be returned to the intermediary
and not to you. At your direction,
the intermediary will forward
the necessary funds to the seller’s
agent or title company.
Paying
any other costs from exchange
proceeds, such as loan application
fees, appraisal fees and environmental
study costs, can be very risky.
You should discuss this issue
with your intermediary before
directing exchange proceeds to
be spent in this manner.
--The
Experts
|
