Legacy Leverage

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In the Purchase and Sale Agreement the timing of receipt of Earnest Money is important. Agents must be sure the EM has been received from the buyer. Regardless of who is holding the EM, the seller’s agent must make sure the Holder has received the EM as per the P&S Agreement. If you are the Buyer’s agent, you must be sure you receive the EM from the buyer and get to the Holder as per the P&S Agreement. The P&S Agreements states if EM is "not timely paid, Holder shall promptly give notice of the same to Buyer and Seller. Buyer shall have three (3) banking days from the date of receiving the notice to cure the default and if Buyer does NOT do so, Seller may within seven (7) days thereafter to terminate this Agreement upon notice to Buyer . If Seller fails to terminate the Agreement timely, Seller’s right to terminate based on the fault shall be waived”. Note the 3 banking days for buyer to cure is AFTER from date of notice. NOT 3 banking days from the days EM was suppose to be received on the P&S Agreement, but from the NOTICE from Holder. The lesson is be sure to get the EM and be sure to follow up and make sure received by the Holder. Also, be sure the check is written to the Holder and I is the same amount as per the P&S Agreement.