In this video Deirdre P. Brown answers the question of who is responsible for confirming the earnest money deposit has been received by the escrow agent. Is it the listing agent or the selling agent? Watch the video for the answer.
Hello this is Deirdre Brown your settlement agent serving DC, Maryland and Virginia. A listing agent asked me whose responsibility is to ensure that the earnest money deposit has been received by the escrow agent. Is it the selling agent or the listing agent's responsibility.
The short answer is that both agents should make sure that the earnest money is deposited in a timely fashion. But if there is ever an issue it will follow on the listing agent. The listing agent has a duty to protect the interest of the seller. Due diligence requires that the listing agent make a reasonable effort to ascertain all material facts relating to a transaction. An agent's failure to verify earnest money deposit on behalf of a seller could constitute grounds for disciplinary actions.
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