Originally Posted by davidpm
I'm pretty sure the broker I know just hangs on to the 10% deposit check until the closing when it becomes his.
Cuts down on paperwork.
Is this illegal, I not sure I see anything wrong with it.
He deals with mostly 50,000 and below boats so maybe that is the reason.
Do you have any examples of any buyer who lost their deposit. IE did not get the boat and did not get their 10% deposit back.
I thought it was pretty much standard practice that no matter the reason if the closing didn't happen the deposit was returned.
What has been your experience?
All states have laws regarding escrow accounts, the dollar amount of the sale not withstanding.
An undeposited check is worthless for enforcing the contract as it can be cancelled at any time so it offers no protection.
Getting your money back after the cancellation of the sale is governed by what is in the ratified purchase agreement. It is not automatic. A properly worded agreement should spell out what happens in the case of default and also define what default would be..