Even Good Guys can get SCAMMED!!

In a previous posting, I reviewed certain changes to the Residential Contract for Sale and Purchase recently adopted by the Florida Association of Realtors and the Florida Bar Association.  As discussed, one notable change to the new form was the manner by which Deposits will be handled by the Escrow Agent.  Instead of Deposits being subject to “ CLEARANCE” they will now be subject to “COLLECTION” which means that the funds must be actually and totally collected.  The intent here is to insure that funds provided to the Closing Agent are GOOD!!  This new terminology attempts to circumvent efforts to defraud the Closing Agent which efforts are enhanced during difficult economic periods.