Escrow Deposits

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Earnest money is money put down by the home buyer as a good-faith gesture that the buyer is serious about purchasing the property. Typically it's 1-5% of the purchase price (defined in the agreement between Buyer and Seller). While pending closing on the property, the money is deposited into an escrow account (Trust) with the seller's broker, title company or escrow company. You can view and manage these in Zipi in the Escrow Deposit module.

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You need a trust account to collect deposits because any money the brokerage collects is a liability. That means the company is liable to pay that money back to someone else. A trust account is a separate account from the one that you use for your day to day operations.
 

Collecting Deposits 

  1. To collect a deposit, click the Collect a Deposit button at the bottom of the Disbursement card

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  2. This creates a new Deposits card

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  3. You have three sections here:
    • Requests
    • Payments
    • Release
  4. Requests send a request to the buyer for the money. Can be automatic or in person
      1. Upon clicking Requests, you will see the following pop-up

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      2. Fill in the following fields:
        1. Customer name
        2. Customer email: automatically fills out the email for the Customer added, but you can change it to a different one
        3. Product/Service
        4. Amount
        5. Due date: that's specified on the contract
        6. Payment methods: how you want to receive the payment
      3. When you fill all these out, click Create Request

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      4. You can choose:

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        • Create and Send: sends an email to the customer
        • Create as Open: just creates a request in the system
      5. Once the request is created, you can see the details

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  5. Payments: Once the customer pays the deposit, it updates here
    1. On clicking Payments, you will see the Payments popup

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    2. Fill in the following fields:
      1. Deposit Request: You can choose that from the dropdown

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      2. Payment Date
      3. Amount
      4. Payment Mode
      5. Paid to
      6. Notes (if any)
    3. Once all that is done, hit Create and you should this under Payments

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  6. Release: The deposit that the broker has is a liability so you need to pay it back
    1. Click Release and enter the following:

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    2. Deposit Received From: who paid the deposit
    3. Release Funds From: the bank (trust) account the funds were being held in
    4. Pay To: It can be the closing company or the broker keeps it and asks the closing company to deduct that from their commission. In this case, you will see the deposit amount deducted from the payout under Payouts
      Note: If you want to release the payment to someone other than the brokerage, commission payer, or deal contacts, you can add them to the Others field on the Deal Information card. You will then be able to see them in this dropdown.

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    5. Apply To: You will either see Deal Payout or Separate Transfer 
      • Deal Payout: The release is not associated with any financial entity (bill)
      • Separate Transfer: When the selected entity has payout in the deal
    6. Amount
    7. You can make the payment via:
      • Zipi Pay
      • Check
      • Record
    8. Once you make this payment, you will have a record of it in Zipi

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      Note: You need to create a request for the escrow deposit, followed by the payment, and release
    9. You can view and manage escrow deposits and releases in the Escrow Deposit module, but you can create them on the Deals page only. 

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