I wrote the good faith check to the real estate agency for 1,000. The realtor told me they dont cash the check until you are out of attorney review. They have cashed it already. I called my attorney, we are not out of review. Why did they do this? Is this a sign of problems to come?

In my area the good faith check is given as soon as the contract is signed (accepted) by all parties and cashed immediately. Since that is not what you were told was going to happen, I'd call the agent.

Here in VA, the ernest money deposit is made at the time of writing the contract. Once the contract is ratified, we have 5 days to turn the contract and money into our Broker.

Most states require that a check be cashed immediately... in Florida we must have the check deposited with in 3 business days of face sever fines, the agent only has one of those days to present the check to the brokerage.

If a check is not cased.... what use is it? It certainly would not be Earnest Money.... no Earnest shown by holding it.

I would check with the laws of your state. I am in Florida and as the last poster said we have three bussiness days to have it deposited in the brokers escrow account. Thats from the time the check was given to us not even from execution.
Thanks
Alan Plager
Prudential Tropical Realty

condo_gal, you are probably right about cashing the check. If NJ is like NY, you don't have a contract until signed by all parties after the attorney review period.

I know here my broker has 3 days to deposit the check into her escrow account. A sales contract is not a contract without the good faith money. If anything goes wrong that is not the buyers fault they get the money back. Or they can use the money at closing if the deal does eventually go through.