In the metro Atlanta market, it's becoming common to have the closing attorney hold the buyer's earnest money. In this highly competitive market, due diligence deadlines are also either non-existent or very quick. In light of these trends, I've witnessed several seller agents anxiously hoping that the earnest money is received prior to a potentially quick buyer default. In this example, imagine the earnest money is due in 3 days and the due diligence deadline is 4 days. On Day 3, the earnest money receipt is not provided yet AND the investor buyer hasn't inspected the property. The seller and seller's agent are worried that the buyer may default prior to the earnest money being received, causing extra complications during an already stressful few days.
Consider countering any buyer offer with an earnest money due date of "as of the binding date" or "1 business day from binding". This small step could really give you and your seller (and your transaction coordinator) some extra peace of mind.
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