Does your seller want the ability to keep the binder deposit if the buyer cannot fulfill their obligations in the contract? If so, make sure they know the different processes depending on who holds the binder.
The best place to hold a binder is with a real estate brokerage. If there is a binder dispute, as described in the NEFAR Purchase and Sale Agreement lines 276-278, “…the broker holding the binder deposit(s) may request the issuance of an Escrow Disbursement Order from the Florida Division of Real Estate.”
If the binder is held by an attorney or title company and there is a binder dispute, then the only option is interpleader. An interpleader involves lawyers, courts, and judges.
Look at lines 275-276, “…the interpleader’s attorney’s fees and costs shall be deducted and paid from the binder deposit(s)…”
Interpleaders usually have legal costs between $1,000-$2,500. It can go higher. Legal costs come out of the binder. If your binder is $1,000 and the buyer doesn’t agree to release it to the seller, there will be no binder left for the seller to collect from.
This is one of the reasons we recommend a strong binder of at least $3,000. That way, there is something worth fighting over, in this case the remaining $1,500-$2,000 after legal fees, at best.
As you’re finalizing your contract, make sure your customers know what can happen if there is a binder dispute.
My Agent Greg 