How to Request Funds Using Form 355-T: A Step-by-Step Guide

If you are a seller in a real estate transaction and need to request funds from the buyer, using the appropriate form is crucial. Form 355-T, titled “Notice to Buyer to Deliver Cash or Immediately Available Funds,” is specifically designed for this purpose. By using this form, you can demand the earnest money deposit and due diligence fee from the buyer. This guide will take you through the step-by-step process of requesting funds using Form 355-T.

It is important to note that this form is not applicable for additional earnest money deposits, which may have separate terms and conditions. Failure of the buyer to comply with the request within the specified deadline can result in termination of the contract. Time is of the essence, and any notices given over a weekend or holiday can affect compliance deadlines. Now, let’s dive into the details of requesting funds through Form 355-T.

Filling out Form 355-T

Step 1: Provide Basic Information

The first section of Form 355-T requires you to provide basic information about the transaction. This includes the buyer’s name, seller’s name, address of the property being sold, and the closing date. It is essential to ensure that all the information provided in this section is accurate and up to date. Any discrepancies can lead to delays or issues in the funding process.

Example: In the “Buyer’s Name” field, enter the full legal name of the buyer as it appears on the purchase agreement or any other relevant documentation.

Step 2: Specify the Amount and Deadline

In this section, you will specify the amount that you are requesting from the buyer and the deadline by which the funds need to be delivered. The requested amount should include the earnest money deposit and the due diligence fee. Both of these amounts are typically outlined in the purchase agreement or any other terms agreed upon by both parties.

Example: Enter the total amount being requested in the “Amount” field, ensuring that it includes both the earnest money deposit and the due diligence fee. In the “Deadline” field, specify the date and time by which the funds need to be delivered, usually within one banking day.

Step 3: Attach Supporting Documentation

In order to support your request for funds, it is important to provide any relevant documentation along with Form 355-T. This can include the purchase agreement, any amendments or addendums, and any other documents that are necessary to validate your request. It is crucial to double-check that you have included all the required documents to avoid delays or difficulties in the processing of your request.

Example: Attach a copy of the purchase agreement, highlighting the sections that outline the earnest money deposit and due diligence fee. Include any additional relevant documents, such as amendments or addendums, that are necessary to support your request for funds.

Sending Form 355-T

Step 1: Choose the Method of Delivery

Once you have completed and attached all the necessary documentation to Form 355-T, you need to decide how you will deliver it to the buyer. You have the option of sending the form and supporting documents via email, fax, or physical mail. Consider the urgency of the situation and choose the method that will ensure timely delivery and receipt by the buyer.

Example: If time is of the essence and immediate action is required, consider sending the form and supporting documents via email or fax. This will allow for faster communication and a quicker response from the buyer.

Step 2: Keep a Record

It is crucial to maintain a record of all the documentation sent to the buyer, as well as any communication regarding the request for funds. This documentation can serve as evidence in case there are any disputes or issues in the future. Keep copies of the completed Form 355-T, any attached documents, and records of delivery, such as email receipts or fax confirmations.

Example: Create a folder or file where you can keep all the relevant documents related to the request for funds. This can include digital copies of the completed Form 355-T, attached documents, and any communication records, such as email receipts or fax confirmations.

Termination of Contract

If the buyer fails to comply with the request for funds within the specified deadline, termination of the contract may be necessary. In such cases, you can use Form 352-T, titled “Notice of Termination of Contract Due to Buyer’s Default.” This form allows you to officially terminate the contract and seek any remedies or damages that may be available under the terms of the agreement.

Example: If the buyer does not deliver the requested funds within the specified deadline, fill out Form 352-T to officially terminate the contract. Be sure to gather any evidence that supports your claim of the buyer’s default, such as copies of the request for funds and any responses or lack thereof from the buyer.

Form 355-T is a valuable tool for sellers in real estate transactions who need to request funds from the buyer. By following the step-by-step guide outlined in this article, you can ensure that your request is made accurately and efficiently. Remember to provide all the necessary information, attach supporting documentation, and keep a record of all communication regarding the request for funds. In the event that the buyer fails to comply with the request, Form 352-T can be used to terminate the contract. By utilizing these forms effectively, you can protect your interests and ensure a smooth transaction process.

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