Return Of Earnest $$$?

Comments(6)

• 
  maw14th November, 2003

  Both the earnest money and the deposit are refundable as long as you fufill your end of the contract. If your offer is not accepted then the earnest money is returned post haste( usually the check is never cashed) If the offer is accepted and you move into a purchase and sale agreement and then put a deposit down this money is refundable if you do not get funded within the specified time period. Make sure you know the dates involved and that you adhere to them. As for an attorney reviewing the contract that is outside of closing costs but something you should do as you seem to be unsure of the contract process. Good Luck!!

• 
  Alac1214th November, 2003

  Quote:
  On 2003-11-14 07:49, tony1853 wrote:
  Hello All.
  
  First let me say thanks to all of you who have taken the time to answer my posts; as I move nearer and nearer to my first deal, I'm getting anxious and I am asking a lot of q's, and you guys have been great!
  
  I am going to be looking at 3 or 4 properties tomorrow. The broker said that if I am interested in any of them, he would like a $1K earnest money deposit, and another $1.5K on contract acceptance. Here's my concern - what happens if we never come to agree on the contract? Do we just part friends, no harm/no foul, and I get my earnest $$$ back? Will such a clause exist in the contract?
  
  Also....i need to find a closing attorney in the area of the property. I would like the contract reviewed by an attorney - is this service usually included in the closing fee, or is it something extra?
  
  Thanks much.
  
  Tony
  Hi Tony, I may be able to assist you with a closing attorney.Send me a pm pertaining to the area.

• 
  tony185314th November, 2003

  Thanks Maw. We have been prequalified, so the funding isn't an issue. I expect that I will make an offer on something tomorrow and will be leaving earnest money. My concern is if it never gets past the acceptance of the contract (upon which the broker wants another deposit). If neither of us accept the contract and we can't agree on a mutually acceptable contract, I just want to make sure that the broker has to return my earnest money.
  
  Also, will such a clause exist in the contract, i.e., something to the effect that if the contract is not accepted, all $$$ deposited to that point are refunded in full?

• 
  maw14th November, 2003

  The offer contract should have that language if it doesn't ask them to put it in. Not a big deal and the RE Broker knows he's obligated to return the funds to you if the offer isn't accepted. Just an FYI I never let the Broker dictate the amount I put down with an offer. I tell them that I am making an offer and putting down 100.00. If the have a problem with it I tell them I'll just go through someone else. They are obligated by law to present all offers and there is no mandatory amount that needs to be paid as a deposit with the offer.

• 
  DaveT14th November, 2003

  Quote:They are obligated by law to present all offers ...I am under the impression that the agent is only required to submit written offers. Verbal offers, while they may be sincere offers, are not required to be presented.
  
  Just my understanding.

• 
  BAMZ14th November, 2003

  I agree with Dave. In my state, only written offers are required to be submitted!
  
  Besides, if my agent called me with a verbal offer, I would tell them to put it on paper before I would even consider it!
  
  BAMZ