The SCR620 earnest money disclosure form is used to reinforce earnest money issues when BIC is holding earnest money in addition to SCR310 residential contract’s earnest money section which states earnest money issues.
SCR620 is useful to remind buyers and sellers that BIC held earnest money requires some legal formalities prior to disbursement.
https://screaltors.org/wp-content/uploads/Forms/620.pdf
LLR SC Real Estate Commission states that BIC holding earnest money should hold that money indefinitely until:
1. All buyers and all sellers sign a disbursement agreement on the earnest money (e.g. SCR518 disbursement+release, SCR517 disbursement w/o release, mediation agreement)
or
2. Proper judge signs disbursement order on earnest money. (BIC only one who can volunteer to file and file a magistrate interpleader lawsuit and only if the amount is less than $7500. Otherwise, a higher court is required).
Alternative: SC lawyer holds the earnest money. Best practice: buyers, sellers, and lawyer enter into a written escrow agreement that states how the earnest money is handled both when the deal closes or if the deal fails to close.
Posted by : Byron King on 5/8/18 (This information is only accurate as of 5/8/18. You must contact SCR for updates and changes to this information after 5/8/18 as laws and regulations may change over time. SCR 803-772-5206 or email info at screaltors.org)