The new Trec Contract requires Earnest Money and Option Fee to be payable and
delivered to the Escrow Agent.
- Delivery can be either via check, wire or third party apps.
- Make sure checks are made payable to Texas Title
- If the Option Fee is made payable to the Seller, Escrow Agent will be unable to accept, endorse or otherwise deposit.
- If the Option Fee delivered to Escrow Agent is payable to the Seller, the Buyer may inadvertently waive their option period if delivery is deemed not timely.
- Practice point: Agents please check and double check when picking up a client’s EM or Option Fee to make sure Texas Title is the named party. Communicate this point when the contract is signed.
- Beware of the option fee snare.