Earnest Money Disputes, BIC Holding Earnest Money (Mediation/Litigation)

//Earnest Money Disputes, BIC Holding Earnest Money (Mediation/Litigation)

Earnest Money Disputes, BIC Holding Earnest Money (Mediation/Litigation)

Here is the link to the SCR mediation information:

https://www.screaltors.org/mediation/

Here is the link to the SCR mediator list:

https://www.screaltors.org/wp-content/uploads/2017/11/MediatorPamphlet2016.pdf

Recommend the parties seek legal counsel asap.

The parties will talk and decide which mediator they want to hire and where/when to meet. Then, the parties will meet and split the money in some percentages (self-settlement) and the mediator is the facilitator, not the decision maker. The parties decide which party gets what amount of the earnest money.

If the parties cannot self-settle or mediator assisted self-settle then the parties and their lawyers can get a court order on damages, attorneys fees, and earnest money.

The BIC holding less than $7500 of earnest money may volunteer to sue the buyers and sellers in a magistrate interpleader or hold the money indefinitely until the parties sign a disbursement agreement or a proper judge signs an order.

Arbitration is typically for BIC versus BIC on procuring cause for MLS cooperative compensation. Arbitration is not for earnest money disputes. Mediation is for earnest money disputes. Mediation is self-settlement with a mediator facilitator.

If a law firm is holding earnest money, hopefully, the parties and the lawyer signed an escrow agreement at the beginning of the transaction that details how the money comes out of the law firm’s trust account both in the event of a successful closing and the event of an unsuccessful closing. Without such an escrow agreement, the parties should discuss with legal counsel how the money will be disbursed. While LLR SC real estate commissioners’ interpretations of SC real estate license law now requires BIC escrow agents to hold earnest money indefinitely until the parties sign or a proper judge signs disbursement documents, attorneys are not bound by LLR interpretations of SC real estate license law and can manage their trust accounts.

BIC’s are required to deposit received trust funds into their trust account per SC real estate license law.

Posted by : Byron King on 9/13/18 (This information is only accurate as of 9/13/18. You must contact SCR for updates and changes to this information after 9/13/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)

By |2018-09-13T08:49:18+00:00September 13th, 2018|Legal FAQs|0 Comments

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