What are the funds of custody?

safekeeping funds are money earmarked in a special storage account as a deposit for a given sale or transaction. There are two main situations in which storage is required: in the auction purchase or in land sale. The purpose of the storage account is to keep the money safe and secure until the event takes place and acts as a guarantee of the seller to the item that the buyer is really interested in and is able to buy an item. The individual that offers an offer is usually dependent on a number of factors. Emergency can include control of structure or assets, search for title to ensure that this property has a free and clear title, and the buyer's ability to receive permission or financing. When the buyer makes this conditional offer, if the seller accepts, the property must take the property from the market while the buyer provides Land meets his needs.

In order for the seller to sell a real estate from the market must know,that the buyer has funds to pay money and that the buyer seriously monitors the offer. As a result, a deposit or serious money is often required. This money is considered to be funds of safekeeping, because it is money that the buyer pays to the seller if the buyer does not follow the agreement. The safekeeping funds are maintained on a special account, usually in the office in the area of ​​real estate, and when the agreement is closed, the seller pays for custody funds. If the agreement does not close, because one or more events in the contract are not met, then the safekeeping funds will return to the buyer.

A similar assumption exists in auctions. A person who buys an item in the auction may want to assess the item or authenticity before the agreement follows. Thecups will pay a deposit that is put into the store with a third party. After meeting the conditions - ie the open item is authentic - the safekeeping money is then paid to the seller.