Top 50 Questions about Farmland
No, the earnest money check does not get cashed immediately. Instead, the transaction follows a clear process that complies with Iowa Real Estate Commission rules. These rules require the check to be deposited into a trust account within five days, ensuring transparency and security.
How the Process Works
Post-Auction Communication: Right after the auction, the buyer notifies their bank about the earnest money. At the same time, our auction team confirms that the buyer has sufficient funds. This quick communication keeps the process moving smoothly.
Transfer to the Attorney: Once verification is complete, we deliver the check to the seller’s attorney or the trust account manager. This handoff happens promptly to keep everything on schedule.
Trust Account Deposit: After receiving the check, the attorney deposits the funds into a trust account—usually within two days. This step protects both parties and ensures the money is secure until closing.
Why This Process Matters
Compliance: Iowa law requires clear, timely handling of earnest money. By following these guidelines, we ensure every transaction remains compliant.
Security: The trust account keeps the funds safe throughout the closing process, giving buyers and sellers confidence in the transaction.
Key Takeaways
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The earnest money check must go into a trust account within five days.
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The process includes verification, bank communication, and prompt delivery to the attorney.
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The trust account safeguards the money until closing.
For smooth transactions and expert guidance, contact David Whitaker – Iowa Land Guy for your farmland buying or selling needs!
David Whitaker | Iowa Land Guy
