I. Deposits held by Title Companies or Law Firms; and

II. Home Repairs and the Hiring of Contractors. 

HELPFUL HINTS:

I. While most deposits are held by the real estate company there are occasions when they are held by the title company or a law firm. When a deposit is placed with a title company or a law firm, the real estate agent who prepared or presented the sales contract is obligated to indicate on the contract the name, address and telephone number of such title company or law firm. Within three (3) business days after each deposit is due under the contract, the real estate agent’s broker is obligated to make written request to the title company or law firm that is holding the deposit to provide written verification of receipt of the deposit.

Within ten (10) business days after the broker makes the written request for verification of the deposit, the broker must provide the seller’s broker with either a copy of the written verification, or, if no verification is received by the agent’s broker, written notice that the agent’s broker didn’t receive verification of the deposit. If the seller is not represented by a broker, then the agent’s broker must notify the seller directly.

II. When it comes to seller’s making the necessary repairs to the home being sold, the contractor’s law allows unlicensed persons to perform any work of a minor nature in which the total contract price for labor, materials and all other items are less than $1,000. This exemption does not apply if the construction or repairs are part of a larger project where multiple bills from the same or different individuals are issued for the purpose of avoiding this limitation. Notwithstanding the foregoing, the unlicensed worker may not perform work that requires a contractor’s license or a building permit.

However, please be aware that the type of worker we’re talking about above is usually a handyman that probably doesn’t carry liability and/or workers’ compensation insurance. This could expose the seller to liability in the event an accident occurs. That being said you should always recommend that your seller’s engage licensed and insurance contractors to perform all repair work and mold remediation, as applicable.