Cashing the Option Check Part II, 1-18-2018

This week Dawn addresses more questions generated when discussing issues around cashing option checks.

Christina Klement
almost 2 years agoJanuary 18, 2018
02:26:93
Thank you Dawn for this clarity.
Denise
almost 2 years agoJanuary 18, 2018
02:26:89
Good info!
Jared Fleischer
almost 2 years agoJanuary 18, 2018
Thank you Dawn for continuing to provide relevant content to the industry. This was great!
Jessica Rodgers
almost 2 years agoJanuary 18, 2018
Great info!
Shari
almost 2 years agoJanuary 19, 2018
Thanks for the great info!
Joi McKinney
over 1 year agoMay 9, 2018
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?
Blair McCartney, Associate Counsel
over 1 year agoMay 9, 2018
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
Pam Henderson
about 1 year agoSeptember 10, 2018
Hi Dawn,

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?
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