Are we splitting hairs here? I understand they are required to comply with escrow laws. However, what law requires them to cash the check into an escrow that no one has any actual right to prior to survey? My check has never been cashed until survey when, thereafter, default provisions are enforceable.
Maybe we are splitting hairs. I am not trying to be argumentative. Brokerage contracts specify cleared funds. An un-cashed check is not cleared funds.
There have been many lawsuits over the years. Here is but one scenario:
Buyer surveys boat which he rejects because it has one bottom paint blister. Boat is still hanging in the slings and buyer says forget it and leaves without paying the yard or the surveyor.
Seller is forced to pay the yard in order to get his boat back.
Surveyor files a maritime lien against the boat which must be satisfied prior to any future ownership transfer .
Broker deposits buyer’s check which he has been holding and discovers that the check is no good.
Seller is now out 1k-2k and wants to know why the check wasn’t cleared prior to survey?
Broker says because he heard on the internet that it wasn’t necessary.
There are many permutations of the above. Sadly, not everyone is nice or honest. People who themselves are nice and honest don't always realize that.
In FL checks are now discouraged and most everything today is done by wire transfer including deposits.