Deposits Retained by Broker and Excess Deposit paid by Broker to Seller
Example 1 (Part or all of borrower's deposit retained by broker, with any part of the deposit that is left over is paid by broker to settlement agent):
> Facts: Buyer places deposit of $20,000.00 in escrow on a $200,000.00 purchase. Brokers 1 and 2 each get a 3% commission. Broker 1 is holding the deposit, and at closing will retain $6,000 as a commission, pay $6,000 to Broker 2 as a commission and pay the $8,000 balance of the deposit to the settlement agent.
> How to handle: Enter the full deposit of $20,000.00 on line 201. For each broker, at lines 701 and 702, check the box that says Amount of Deposit Retained by Broker. (The amount box next to the check box should read $6,000 for each broker.) Click the Receipts/Disbursement menu to see the results.
Example 2 (Part or all of borrower's deposit retained by broker, any part of deposit left over is given directly from broker to seller):
> Facts: Assume that the $8,000 left over from the $20,000 deposit in the prior example is paid directly to the Seller instead of the settlement agent.
> How to Handle: Follow the steps of example 1. In addition, enter $8,000 as an Excess Deposit on line 501.