Making an earnest money deposit can help buyers lock up their dream home. Earnest money deposit deals are also appealing to sellers, making them a valuable tool.

However, making earnest money deposits typically requires prospective buyers to hand-deliver or mail a physical check to their real estate title company. The escrow title company then must process the check and notify the seller that the funds have been received. This makes providing earnest money deposits quite tedious and can delay the real estate transaction from moving forward.

Patten Title has partnered with ZOCCAM to streamline this process. The ZOCCAM mobile app allows involved parties to effortlessly and instantly make an earnest money deposit, thereby increasing the efficiency of the closing process.  

An earnest money deposit, sometimes known as a “good faith deposit,” is a transfer of funds made to sellers before a real estate transaction is ready to close. These funds are known as “earnest money” because they demonstrate that the prospective buyer sincerely or earnestly intends to proceed with the purchase of the home. While the earnest funds are provided to sellers, they are held by title and escrow companies until the deal proceeds.

Earnest money deposits can incentivize sellers to accept an individual’s offer because they demonstrate that the person is serious about making the purchase and can give a prospective buyer an edge in their offer if the earnest money deposit is significantly higher than other offers. Additionally, an earnest money deposit allows the buyer to prove that they can access the requisite funds needed to purchase a property.

Once a seller accepts a conditional offer from a buyer, they must take the home off the market. If the deal falls through, the seller has lost weeks or even months of progress. An earnest money deposit protects their investment in these scenarios by giving them some funds in exchange for the lost time.  

To be clear, earnest money is not the same as a down payment. However, these funds can be applied to the down payment amount if the deal proceeds forward as scheduled.

Earnest money deposits vary in amount depending on the current market conditions. Traditionally, an earnest money deposit should be approximately 1% to 3% of the home’s purchase price. For instance, the earnest money deposit on a $300,000 home may range from $3,000 to $9,000. Buyers can also provide a slightly larger earnest money deposit to entice the seller to accept their offer.

Buyers will not forfeit their earnest money deposit unless they back out of the transaction for an unspecified reason. Conversely, buyers will recover their earnest money if the deal cannot proceed due to certain contingencies listed in the contract, such as a failed inspection.

Title and escrow companies receive earnest money deposits and retain these funds until the outcome of the transaction is decided. If the deal proceeds forward, the real estate title company will allocate the funds to closing costs or other designated expenses. If the deal falls through due to the buyer backing out, the real estate title company will transfer the funds to the seller. If the home or the seller fail to meet a contingency, the funds are returned to the buyer.

ZOCCAM is a mobile app and earnest money deposit transfer portal used by companies that provide realty title services. The user-friendly mobile app has tools and features that allow buyers to send funds to their designated real estate title company quickly.

ZOCCAM can expedite the transfer of funds, thereby allowing buyers to ensure that their dream home is taken off the market while navigating the rest of the closing process.

If you need to make an earnest money deposit, ZOCCAM is the most efficient solution. To learn how to use ZOCCAM, check out this instructional video. We have also included a step-by-step guide below.

When using ZOCCAM for the first time, follow these seven easy steps.

1. Download the ZOCCAM App: First, you will need to download the ZOCCAM app. ZOCCAM is available at the Apple App Store and the Google Play Store. The app is designed to work seamlessly with both Apple and Android operating systems so that any customer can take advantage of this great product.
2. Register for a Free Account: Next, you will need to register for your free ZOCCAM account. You can register using your mobile number and you will be prompted to create a secure passcode. This process takes only seconds.
3. Select “Capture”: Once you are logged into your account, select the “Capture” icon. Doing so will take you to a secondary menu with three buttons. Select the “Earnest Money” button to start your earnest money transaction.
4. Choose the Appropriate Patten Title Company Office: After pressing the “Earnest Money” button, the ZOCCAM app will prompt you to select your real estate title company. Patten Title Company should be visible at the top of your screen. If it is not, you can scroll down the options grid until you locate it. Alternatively, you can type in the name “Patten Title” in the search box at the top of the screen. Since Patten Title Company has multiple offices throughout Austin, Houston and Dallas, you must select the specific location you wish to send your earnest money deposit.
5. Input Property and Deposit Data: On the next screen, ZOCCAM will ask you to input the property’s address involved in the transaction. This will include the street address, city, state and zip code. Additionally, you will need to input your earnest money deposit check amount in this section. Below the check amount are two buttons that will read “Attach Contract” and “Contract Already Sent.” You can attach the contract to the earnest money deposit information in the ZOCCAM app if it has not already been submitted. After selecting one of the two buttons and following the prompts, the ZOCCAM app will ask you to verify the earnest money deposit amount. Make sure to carefully review the earnest money deposit amount before proceeding forward, as this figure must match the amount listed on the check.
6. Provide Seller and Buyer Information: You will need to provide information about the buyer, buyer’s agent, seller and seller’s agent. The ZOCCAM app requests a first and last name for all parties, as well as email addresses. However, only your email address is absolutely required, so there is no need to waste time searching for additional email addresses if you do not have them on hand. After inputting the requested information, check the “Me” box next to your information. Next, select the “Capture” button to proceed forward with the final step.
7. Photograph the Earnest Money Check: All that is left to do is to photograph the earnest money check. You will be prompted to photograph both the front and back of the check. The check must be made payable to your escrow title company. The back of the check must include your signature in the “endorse” section. Once the ZOCCAM app approves your images, you will receive a confirmation that your earnest money deposit has been received.

For iPhone users, the ZCHECK feature allows the app to directly link to your bank account and help you produce an electronic check, or ZCHECK, to avoid writing a paper check entirely. 

Patten Title Company partners with ZOCCAM because the app is:

Convenient

The ZOCCAM app allows buyers to submit their earnest money deposits conveniently. Buyers or their agents no longer have to deliver physical checks to the real estate title company. Instead, buyers can easily submit their deposits from the comfort of their homes.

Secure

The ZOCCAM app is a secure fund transfer platform. It facilitates the transfer of earnest money deposits while also protecting confidential user data from bad actors.

Fast

When making earnest money deposits using traditional methods, the entire process can take hours. If the check is delivered late in the afternoon, sellers or their agents may not receive the funds until the following business day. In the meantime, other buyers will have a crack at scooping up the home that the client has had their eye on.

ZOCCAM allows buyers and real estate agents to make an instant earnest money deposit and attach a contract simultaneously. This streamlines the transaction process while allowing buyers to present sellers with appealing offers.

User Friendly

ZOCCAM was designed to be extremely user-friendly. All buyers, even those who are not very tech-savvy, can submit earnest money deposits in minutes using the ZOCCAM app. The app’s versatility, accessibility, and security were some of the primary factors that led Patten Title Company to partner with ZOCCAM.

If you need safe, reliable and efficient realty title services in the Austin, Houston or Dallas areas, Patten Title Company can help. Not only do we have a team of expert real estate title professionals, but we also strive to simplify the home buying process by incorporating leading-edge technologies into our business model.

Contact us today to learn more about our services and suite of tools like the ZOCCAM app.