Whenever possible, get a third party to hold the due diligence money (also known as the down payment or deposit). Your attorney is the best choice, but that rarely happens. The broker’s attorney or title company is usually the third party; sometimes the seller’s attorney will be required to hold the money. The one person who should never, ever, be allowed to hold the down payment money is the seller!
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- (no access) - [David_Lindahl]_Multi-Family_Millions_How_Anyone_(b-ok.org).pdf, p53
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