Under the standard Offer to Purchase and Contract form*, who holds the earnest money?
The form permits the parties to select who will hold the money – typically, the listing firm. Whenever a licensed real estate firm or agent holds any earnest money, it must be deposited in a trust or escrow account until closing. However, if any addenda are used with the form, check to see whether they conflict with any provisions in the form concerning who will hold the earnest money or other pre-closing deposits. *The Standard Form No. 2-T, Offer to Purchase and Contract is a well-known and widely used form jointly adopted by the North Carolina Bar Association (a voluntary professional association of attorneys) and the North Carolina Association of REALTORS (a voluntary professional organization of real estate agents). Q: Is earnest money the same as an option fee? A: No. The option fee is a separate fee the buyer may choose to pay under the standard Offer to Purchase and Contract for the right to walk away from the transaction during a specified period of time. While earnest money m
Related Questions
- What happens if I decide to not continue with the purchase after making the offer or signing a Reservation contract?
- Is a broker required to indicate on the offer to purchase the receipt of earnest money received from a buyer?
- Under the standard Real Estate Purchase & Sale Agreement, who holds the earnest money?
