Want A Copy Of A One Million Dollar Check?

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Feel free to download as many copies as you want of that check. I’m sure the demand will be underwhelming.

So why then is there this silly tradition amongst some listing agents and sellers to ask for a copy of the earnest money check? And some buyer’s agents even voluntarily provide it. Is it supposed to represent that one of the realtors actually received an earnest money check? In practice, it sure doesn’t guarantee that. A buyer can simply make their own copy and forward it along.

Some banks that are selling foreclosed properties have this rule that they need to have a copy of the earnest money check on file. There is a checkbox on some checklist to indicate this. So everyone dutifully follows protocol and plays the game. But in reality they sure can’t deposit a copy so I don’t know what good it is – other than possibly an indication that the buyer intended to provide a real check at some point. And since the seller can’t deposit the check it doesn’t even have to be on a valid account, nor does the account have to have sufficient funds.

I just chalk it up to another one of those strange industry things.

0 thoughts on “Want A Copy Of A One Million Dollar Check?

  1. Lenders only take the cancelled check (received after the check is cashed) or the actual bank statement showing the funds withdrawn from the account as proof of earnest money…
    Plenty of people try to pass off fake checks hence why lenders have higher requirements of proof of funds.

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