Important information about earnest money in real estate transactions.
What is an earnest money deposit? Essentially, it is a form of payment collected by the title company as a demonstration of good faith. Its purpose is to ensure that both parties involved in a real estate transaction adhere to the terms of the contract without breaching it.
In the event that the buyer breaches the contract, the seller has the right to retain the earnest money. It is crucial to closely follow the contract and adhere to the specified timelines. Your trusted real estate professional will guide you through these timelines and assist you in conducting due diligence within the required timeframe if you intend to cancel the transaction.
If you proceed with the transaction, the earnest money you provide will be applied toward your down payment and closing costs. If you have questions about earnest money or anything real estate related, call or email me. I’m always happy to help.
