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 buyer’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. Buyer-side reasons for a refund may include failure to obtain financing (credit or appraisal problems) and failure to negotiate mutually agreeable solutions for inspection report issues.
In the end, both the buyer and seller must mutually agree to release the earnest money deposit back to the buyer by signing a contract addendum.
Coldwell Banker Hunter Realty 15380 Pearl Road Strongsville, Ohio 44136
