| Typically when an offer to
purchase a house is made, you, as the buyer, will also pay an "earnest money"
deposit. This deposit shows the seller that you're serious about the offer to
purchase the property.
The amount of earnest money deposit varies based on the
type of property being purchased and local market conditions. As your real estate
professional, I'll help you determine the appropriate amount to pay as an earnest money
deposit.
The sales contract will dictate who holds the earnest
money. Usually the seller's real estate agent will deposit the earnest money in a
trust or escrow account until closing. At closing, the earnest money is
applied to the purchase price.
In the event the sale doesn't close, the sales agreement
generally spells out the conditions under which you would forfeit the earnest money.
Generally if the seller meets all the terms of the contract, the seller will keep
the earnest money. If the seller does not meet the terms of the contract, you, as
the buyer, may receive a total or partial refund of the earnest money. |
