[WSBARP] Option payment when applied to downpayment
Rich Holland
rich at pnwle.com
Tue Apr 15 10:51:58 PDT 2014
Practically speaking it is better for the ‘buyer’ to have it count as part
of the down payment so they don’t have to come up with the Option money
PLUS whatever the bank requires as a down payment at escrow. They want to
have that option payment counted as part of that amount rather than
reducing the purchase price of the house (which reduces the loan amount
potentially). In either case the money is almost always completely
non-refundable barring Seller default and almost always immediately
released to the seller.
Thanks,
Rich Holland
From: wsbarp-owner at lists.wsbarppt.com
[mailto:wsbarp-owner at lists.wsbarppt.com] On Behalf Of Craig Blackmon
Sent: Tuesday, April 15, 2014 10:42 AM
To: wsbarp at lists.wsbarppt.com
Subject: [WSBARP] Option payment when applied to downpayment
Listmates, I’ve made the tactical decision to ask the proverbial “dumb
question” for a quick answer rather than investing the time to figure it
out myself. Thanks for your tolerance in this regard…
Generally speaking (and consistent with MLS forms) some or all of the
consideration paid for an option can be applied either to the down payment
or to the purchase price at closing. Practically speaking, what’s the
difference? If down payment, must the funds be held in escrow, and/or
actually deposited into escrow by the seller prior to closing? And if to
purchaser price, can it simply be a credit on the settlement statement,
such that the seller can consume the funds in the meantime? That’s my
assumption…
Thanks again.
Craig
Craig Blackmon
Of Counsel Attorney at Law
<http://lawhg.net/> Holmquist & Gardiner, PLLC
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