What is an Earnest Money Deposit? A Guide for Sellers and buyers
If you’ve included a home assessment contingency in your offer and the home examination exposes structural damage or extreme issues, you might pick to cancel the home purchase and your earnest cash deposit will be paid back. Other things you can do to protect your earnest money consist of: Using an escrow account: Never utilize funds straight to a home seller, or wire the cash to the real estate brokerage, lawyer or title company without extremely first validating the wire requirements have really been sent out from a legitimate source.

The amount you’ll move as earnest money will likewise depend on aspects such as the existing market, the local policies and restraints in your state, what’s traditional in your market, and even what the seller needs. If you’ve included a home assessment contingency in your deal and the home examination exposes structural damage or significant problems, you might select to cancel the home purchase and your earnest cash deposit will be reimbursed. Other things you can do to protect your earnest cash include: Using an escrow account: Never provide funds straight to a home seller, or wire the money to the real estate attorney, title or brokerage service without extremely very first validating the wire directions have in fact been sent out from a genuine source.