3rd Party for Deposit??

[Jordan Tebbs]

Looking at a property for sale by owner as my first deal and waiting for approval on my financing.  Based on discussions with the financier I am confident that the loan will come through but buyer received a slightly lower offer and is tempted to move on it.  Wants a deposit to know that I am serious, as the other potential buyer has offered to put up 5k as a deposit (on a property selling for 110k).  Am more than willing to put down a deposit with a 5 day option period as I am very serious.  That being said, I don't know the seller well at all and am worried that if the loan doesn't come through for whatever reason I won't ever see my deposit again.  Is there any kind of company that will act as a third party and hold the deposit until the option period expires?

[Karl B.]

Hello. If you've signed a sale agreement I would deposit the 5K to the title company you're using as earnest money. 

There's nothing wrong with not using a realtor, especially in a FSBO purchase, but definitely hire a good real estate attorney; he or she will recommend a good title company if you don't already have one in mind and make the buying process much easier than going at it alone (remind the seller they're saving 6% because no realtor is involved - even if they're already well aware of that fact they love to be reminded of it).