If you are a Buyer, you may be nervous about having your deposit held by the Seller’s selected real estate Brokerage, that is the Listing Brokerage.
Consider some alternatives:
- Your own Buyer’s Brokerage (at least you know them),
- Seller’s lawyer,
- Buyer’s lawyer, or
- Impartial Third Party including:
- Larger law firms
- Larger Accounting Firms
- Trust companies
- Banks.
Any third party who is not involved in the transaction is going to have to charge an independent fee for this service. It’s not ancillary in any way. They are not otherwise involved in the transaction, or receiving part of the commission, so they will have to be paid a fee, just to hold the deposit.
There is additional coverage that a lawyer may have. Inquire about this in advance. Normal LAWPRO insurance coverage is for $1 million, but this can be increased to $10 million should the lawyer pay the additional premium. It should be noted here, that LAWPRO will scrutinize the lawyer in advance before issuing Excess coverage. So, be sure to inquire.
Brian Madigan LL.B., Broker