Earnest Money Shows You’re Serious
Typically when an offer to purchase a house is made, you, as the buyer will put down earnest money to show you are a serious buyer. The amount of deposit varies based on the type of property being purchased and local market conditions. As your CENTURY 21 ProLink Agent, we’ll help you determine the appropriate amount to pay as an earnest money deposit.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 sales contract will dictate who holds the earnest money, typically this is the listing agency. The check will be deposited upon acceptance of the contract to purchase, by both parties. The funds will be held in a Trust Account until closing. At closing, the earnest money is applied to the purchase price.
In the event the sale does not close, the sales agreement generally spells out the conditions under which you could forfeit the earnest money.