Is my broker being deceitful?

[Melissa N.]

We are in the process of purchasing a 9 unit in South Carolina. Our agent took 10k as earnest money a week ago but just emailed me and said that he needs another 10k for earnest money because the law requires a broker in charge to hold 40% in an escrow account. Is that true?? Let's put aside the fact that he didn't know that in the first place!

[Jay Hinrichs]

@Melissa N.  the BROKER does NOT dictate EM.. its the wish or requirements of a SELLER only.

it is customary though in SC for the broker to hold the EM in their trust account.. and then when it closes the closing attorney gives a credit toward their commission...

unless your not exactly stating whats happening correctly.. this is highly unusual and not legal as well. Brokers cannot demand a certain amount of EM  Only the Seller