Common Questions about Earnest Money in Atlanta

Common Questions about Earnest Money - The following should answer common questions about earnest money when buying a home in Georgia.

What is earnest money? Earnest money is the money a buyer puts down to show the seller good faith that the buyer is serious about purchasing the home.

What happens to the earnest money? It is credited to the buyer at closing.

What if I don't close, can I get it back? Yes, if a termination and release is done by the end of the due diligence period. In Georgia, both buyer and seller need to sign off to release the funds back to the buyer.

What happens to the earnest money if I back out of the contract and my  due diligence  period has expired? That money is released to the seller for the breach of contract by the buyer.

Who holds earnest money? That is a negotiated item. It typically is held by either the Listing Broker or Selling Broker in a trust account. The holder of the earnest money and the amount are stipulated in the contract. Occasionally it is held by the closing attorney.

See other posts related to Home Buying

Home Buying information for Georgia Home Buyers

Q & A on Title Insurance in Georgia

I want to buy a home - What's the first step?

Pre-Qualified Just to See the House?

Back to the Basics - What's an offer anyway?

Due Diligence & what it means to the home buyer

If you are thinking of buying or selling a home in or around Atlanta, GA contact Jen Bowman, Broker Associate with Keller Williams Realty Atlanta Partners at 404-456-5024.