Receipting in the Due Diligence Fee and Disbursing it to the Seller Scenario: You, as the Settlement Agent, are holding the Earnest Money Deposit and also received the Due Diligence Fee from the Buyer. (in the same receipt) The Due Diligence Fee needs to be shown on the CDF as the Seller receiving the funds and a Disbursement made to the Seller in your Register. Navigate to the ProForm Order Register to receipt in the funds from the Buyer for the Earnest Money and Due Diligence Fee. In the Transactions grid choose the + sign to add in the new Receipt. In the Add transaction dialogue box highlight the appropriate incoming funds type (ie: Incoming Wire or Receipt). Select OK. Page 1 of 6 06/15/2018
In the Receipt Dialogue box indicate the Medium (if receipting in a Non-Wire), Transaction date, Payor code as the B contact for Buyer, Payor name (if it does not auto populate form your Order Contacts). In the Apply towards grid enter the amount of the Earnest Money in the Amount field and the Amount of the Due Diligence to be sent to the Seller in the Send to Line. You will also need to indicate the Line you would like the Due Diligence to appear on your CDF or HUD-1 as well as give it a Description. When done select OK. Note: In the example shown below, I received $500.00 in Earnest Money and $500.00 in Due Diligence Funds. You will also notice your Ledger balance now shows the funds receipted in: Page 2 of 6 06/15/2018
IN A CDF FILE Navigate to the CDF, Page 3 screen under Escrow/Closing. In Section N enter a line for the Due Diligence disbursed to the Seller in advance, make it payable to the Seller SA Contact and enter the amount of your Due Diligence fee in the Seller column. Click the numbered line hyperlink to go behind the line. Navigate to the Payees Grid and check the Separate box. Click Close. Page 3 of 6 06/15/2018
Navigate to the Register and there will now be a pending check to the Seller for the Due Diligence Fee as well as your POSTED incoming funds from the Buyer for the Earnest Money and Due Diligence. Follow the normal procedure for printing the Seller's check for the Due Diligence Fee. The Closing Disclosure Form will now reflect the Earnest Money Deposit and Due Diligence Fee disbursed. The Earnest Money will also be shown in the Sales Contract & Earnest Money screen as normally shown when the Settlement Agent has deposited the funds. Page 4 of 6 06/15/2018
IN A HUD-1 FILE Navigate to the Seller Debits (500) screen under Escrow/Closing. Enter a Description for the line for the Due Diligence disbursed to the Seller in advance, make it payable to the Seller SA Contact and enter the amount of your Due Diligence fee in the Seller Column. Highlight the line you created and open the Payees transaction bar and check the Separate box. Navigate to the Register and there will now be a pending check to the Seller for the Due Diligence Fee as well as your POSTED incoming funds from the Buyer for the Earnest Money and Due Diligence. Follow the normal procedure for printing the Seller's check for the Due Diligence Fee. Page 5 of 6 06/15/2018
The HUD-1 will now reflect the Earnest Money Deposit and Due Diligence Fee disbursed. The Earnest Money will also be shown in the Sales Contract & Earnest Money screen as normally shown when the Settlement Agent has deposited the funds. Page 6 of 6 06/15/2018