What Happens To Earnest Money?
A deposit is made, in part, to show the seller your seriousness about buying. Your realtor will inform you of the amount that is usually given in your area. The seller doesnt actually receive the Earnest money. A third party, Escrow Company holds the amount in a special trust or escrow account until the sale is closed or the contract is broken. If you go through with the sale, the money is applied to your down payment or other closing costs. If you fail to buy the house, the seller has the right to keep the money. However, you can get your money back until the point at which you are notified that the seller has accepted your offer. And if the seller fails to fulfill his/her obligations, the money is yours. What Conditions Do You Want To Place On Your Buying The House? When you commit to buy the house through your offer, you may make that commitment contingent upon certain things happening, such as you securing financing, feasibility studies, and or home inspections. What Are You Buying
