Earnest Money
What happens to the earnest money paid by a buyer, how is it posted on the HUD1, for instance the buyer pays $1,000 earnest money, the Realtor puts it in escrow until closing. At closing shouldn't that $1,000 be deducted from the sellers expense, such as the seller is paying $10,000 commission to the realtor, shouldn't the second page of the HUD1 show the $10,000 minus the $1,000 earnest money for a net commission to be paid by the seller of $9,000? :-?
the earnest money is reported on line 201 of the HUD1.
If the real estate office is holding the deposit there are two choices 1. the agent can bring that check to closing 2. the agent can have it deducted from her comission. The $1,000 would be deducted from the buyers closing cost not the sellers.
Karen's right.
If purchase price for example is $100k and $1000 earnest money is given, the buyer then only has to bring $99k to the table. It is the buyers money, not the sellers.