Redwood is Holding Earnest Money Deposit (EMD), What is the Next Step?

This guide will show the information of different scenarios that will happen to the EMD. You will see the steps on each scenario and what is needed from you to complete the transaction (either closed or cancelled).

Below are different types of contract scenarios and how the Earnest Money Deposit (EMD) will be handled on each case.

Scenario 1: Contract is Clear to Close

Option A:  EMD amount is lower than the commission amount – The Title Company will send us the commission funds based on the Settlement Statement minus the EMD amount. Agent doesn’t need to do anything aside from forwarding the Settlement Statement after closing (confirm that required documents are sent to paperwork email).

For example:

• Sale Price: $500,000
• Commission: $12,500 (2.5%)
• EMD: $10,000
• Commission funds due from Title Company: $2,500

Option B:  EMD amount is higher than the commission amount– Click the following guide for instructions: Upcoming Closing but EMD Exceeds Commission Due to C21 Redwood (Overage)

Scenario 2: Contract fell Through or Cancelled

Option A:  Client is still actively looking for another property and would like to apply the EMD to the New Ratified Contract

1. Execute a Release of Contract (you can find this in Zipforms library applicable based on the jurisdiction). The release must be signed by all parties showing the allocation of the EMD refund to be paid back to your client.
2. Send the Release to the paperwork email for your office. Copy processing@c21redwood.com to let them know that the client will be applying the EMD towards a new contract
3. Once the new contract was ratified, execute a Transfer of EMD Letter. Click here for the guide and to download the EMD Letter.
4. Submit the Executed Transfer of EMD Letter to the paperwork email for your office.

Option B:  Client prefers to be refunded (not actively looking for another property)

There are 3 different options for the refund:

1. Mail check to the client’s home address– when sending the executed release to the paperwork email, please copy processing@c21redwood.com with the client’s mailing address.
2. Electronic Transfer by ACH (direct deposit) – have the client fill out this form: emdrefund.c21redwood.com. Let processing@c21redwood.com know that the client will send the bank information through the link (For security, do not send the bank account information through email )
3. Refund through Payload – if the client sent the EMD deposit via Payload, we can issue the refund back to the same account it was sent from. There is no additional charge to the client and the funds will post within 3 business days. Copy processing@c21redwood.com when sending the Executed Release and request for refund through Earnestly. Click here to learn more about Payload.