This week Dawn addresses more questions generated when discussing issues around cashing option checks.
Thank you Dawn for this clarity.
Thank you Dawn for continuing to provide relevant content to the industry. This was great!
Thanks for the great info!
OK, say the buyer has a 10-day option, doesn't pay the option until the 4th day. The seller receipts the option money on the 4th day - does the buyer still have an option to terminate on the last day of option now?
Hi Joi, if the seller accepts a late-delivered option check (as in your example), we take the position that seller has then ratified buyer's right to an option period, and therefore, buyer could terminate under the option just as if buyer had paid it on time. In other words, by accepting the check late, seller has waived the right to say that buyer does not have an option period because it was late. Seller is considered to have "accepted" the check late if seller has formally receipted it or cashed or deposited it. If seller simply holds the check but does not receipt it for buyer or cash or deposit it, the issue is murkier. Dawn discusses this issue further in her video from 6-1-17, available here: https://allegiancetitle.wistia.com/medias/5xd4kx0vma
Please let give me a call if you have further questions! 817-510-6490
Is there a deadline for an option check, if an Amendment is written to extend the option period. Does it fall under the verbiage on paragraph 23? three days after execution?