GOOD FAITH

Picture inside the Linville Caverns, NC.  Deserters of the civil war used this cave as shelter.

GOOD FAITH; denotes sincere, honest intention or belief, regardless of the outcome of an action.
Good faith in real estate is most often called escrow deposit.  This is the initial deposit made into a escrow account to show the buyer's good faith in going through with a transaction.  Legally there is no actual requirement for this to happen to make a legal contract however most buyers wouldn't accept a contract with no show of a good faith deposit.

More and more real estate companies don't maintain escrow accounts in order to reduce paperwork and liability.  In this case the escrow deposit is made to the title company that is closing the transaction.  99% of the time there is no dispute about the release of escrow when a deal doesn't work out for a closing.

The 1% of time is why Walker Bagwell Properties still maintains an escrow account.  When the buyer and seller are demanding release of escrow and the title company is holding escrow, the only recourse is litigation which can be expensive to both parties.

When a dispute of escrow release occurs and the real estate company is holding the escrow then we issue a EDO (escrow dispute order) to FREC (Florida real estate commission).  FREC then looks at both sides and all paperwork involved in the transaction.  FREC then issues an EDO that instructs the real estate company how the release of escrow should be handled and who should be paid the escrow.  This process doesn't cost either party any money and there will be several lawyers review the transaction.    

Sometimes reducing liability doesn't serve the client.

A full service real estate company!

Jim Bagwell