Dealing with earnest money can get buyers nervous during a transaction. The buyer being nervous makes complete sense. Afterall there is usually a lot of money on the line. If all contingencies are met and waived and the buyer decides they want to back out for any reason then they can loose that money.
For those not familiar with "Earnest Money" here is the low down. Basically, when making an offer on a property whether house, townhome, condo, coop or new construction it is expected that the buyer put down 3% - 5% of the offer price. This money tells the seller that you are interested and that you are willing to lay down money to that end. The buyer makes out the check to the buyer's agents brokerage. The brokerage then places it in a trust account which cannot co-mingle with the companies other funds. It is important that the funds are available at the time of Mutual Acceptance. The check must be delivered within two days of Mutual Acceptance and deposited by the Selling Brokerage within 3 days of the time of receipt.
Always stay informed of where you are in the process, what contingencies have been waived or challenged. The more you and your Realtor are on top of it then the less likely you will loose your earnest money. But be serious about your purchase and make sure it is what you want, there is a point of no return and you want to be confident this is the right home for you. If it does need to be taken to court it may cost you and the seller more money then the actual earnest money and the funds could be tied up in court for awhile making it difficult to make another purchase. Be informed and be confident in your home buying. Good Luck!!
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