If the buyer might need or desire to properly pay the due diligence termination fee to the seller electronically, everyone should coordinate well ahead of time to get the e-pay information communicated.
Do not wait until the last minute because a late due diligence termination fee payment can void the due diligence termination and potentially put the buyer into breach of contract risks.
Fedex/UPS/USPS/Courier the paper check to the Notice Address in the SCR310.
Some e-pay systems can have total dollar limits for that buyer and or e-pay service (e.g., PayPal, Venmo) so check on this total dollar transmission issue well ahead of time.
For risk management reasons, it can be simpler to consider the due diligence termination fee as a separate pot of money than the earnest money since disbursing earnest money requires the buyers and sellers to sign a disbursement document or a proper judge to sign a disbursement order where both of which can cause long time delays. Other risk management options can include making the SCR310 earnest money payment deadline fall after due diligence expires.
Posted by: Byron King on 10/23/23 (This information is only accurate as of 10/23/23. You must contact SCR for updates and changes to this information after 10/23/23 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org or email byron at screaltors.org)
This information is not legal advice. This information is intended only to provide general information and may not be relied upon as specific legal guidance. Legal counsel should always be consulted before acting in reliance on this information.