Join Date: Aug 2006
Thanked 26 Times in 25 Posts
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That is all understood.
My point is that with a $100,000+ purchase, a seller will most likely expect something more than $50. 10% is $10,000. I am NOT going to hand over a $10,000 check to a stranger, PERIOD. You can if you want, good luck.
This is what escrow is designed for. A trusted third party holds the money and releases the money under the right circumstances.
In my shopping, I've come across licenced brokers I would not hand a $10,000 deposit to without terms that would punish him. Some brokers will not refund the deposit if you reject the boat. That is their commision check! They will tell you the boat "passed" survey and you must buy. Or they will try to hold off on the refund so as to keep negotiations going.
When buying from a broker of questionable character, at least insist on a penalty clause that charges $100 per day after 10 business days if you don't get your refund. It's rare but it can happen. I'm getting off track into brokers, sorry.
In my 30 years of doing business independently, I've seen some of the nicest people turn out to be ripoffs. Again, I'm not handing a deposit check to a stranger.
Both seller & buyer need protections. A contract is a piece of paper and doesn't mean a damn thing until you go to court at great expense to prove it means something. And then you need to get the judgement enforced.