Who Do I Write the Check to After Executing a Purchase Agreement?

Top 50 Questions about Farmland

After executing a farmland purchase agreement, the earnest money payment—typically 10% of the gross price—must be paid. Here's where to send it:

Earnest Payment Details

1. Amount:

   • 10% of the sale price.
   • Example: For a $1,000,000 sale, the earnest payment is $100,000.

2. Payee:

   • The check is written to the seller’s attorney or a designated attorney specified in the purchase agreement.
   • If the seller doesn’t have an attorney, Whitaker Marketing Group uses its in-house attorney to hold funds in their trust account.

3. Trust Accounts:

   • The attorney holds the earnest payment in a trust account until the transaction closes.

Special Cases

• If the property is part of a trust, receivership, or estate, the seller’s designated attorney will typically manage the funds.

Key Takeaways

1. Write the earnest payment check to the seller’s attorney or as specified in the purchase agreement.
2. The funds are held in a trust account for security until closing.
3. Earnest money is typically 10% of the sale price in farmland transactions.

For a smooth transaction and assistance with all auction details, contact David Whitaker – Iowa Land Guy today! David Whitaker | Iowa Land Guy