How are payments processed for property transactions?

How are payments processed for property transactions?

Introduction: Sold Next Day ensures that property transactions are conducted securely and efficiently, including the processing of payments. Here's how payments are typically processed for property transactions on our platform:

1. Earnest Money Deposit:

• Upon acceptance of an offer, the buyer is required to submit an earnest money deposit within 24 hours to demonstrate their commitment to the transaction.

• Earnest money deposits are collected digitally through Earnnest, a trusted platform for secure payments.

• The earnest money deposit is non-refundable and is sent directly to the selected title company by the seller at the time of listing and is applied towards the total purchase price at close of escrow.

2. Down Payment by Buyer:

• If the buyer is financing the purchase, they will be required to make a down payment, which is a percentage of the purchase price.

• The down payment is typically paid by the buyer at the close of escrow and is separate from the earnest money deposit.

3. Closing Costs and Transfer Fees:

• Closing costs and any transfer fees associated with the transaction are typically paid by the buyer at the close of escrow.

• These costs may include loan origination fees, appraisal fees, title insurance, escrow fees, and property taxes.

4. Seller Proceeds:

• Upon closing, the seller receives proceeds from the sale of the property, which are collected and distributed through the selected listing title company.

• The seller designates the title company at the time of listing, and all seller proceeds are disbursed accordingly.

5. Secure Payment Channels:

• Sold Next Day employs secure payment channels to facilitate the transfer of funds during property transactions.

• Payments are processed through trusted financial institutions and adhere to industry-standard security protocols to protect the parties involved.

Conclusion: Payments for property transactions on Sold Next Day are processed securely and efficiently. Earnest money deposits are collected digitally through Earnnest, while buyers are responsible for making a down payment at the close of escrow. Closing costs and transfer fees are typically paid by the buyer in an AS IS transaction, while seller proceeds are collected and distributed through the selected listing title company. If you have any questions or require further clarification regarding payment processing, our customer support team and licensed real estate experts are available to assist you.