What is an Earnest Money Deposit? A Guide for Sellers and purchasers
If you’ve included a home assessment contingency in your deal and the home examination reveals structural damage or severe issues, you may choose to cancel the home purchase and your earnest money deposit will be paid back. Other things you can do to safeguard your earnest money include: Using an escrow account: Never provide funds straight to a home seller, or wire the cash to the real estate brokerage, title or legal representative company without incredibly first confirming the wire standards have really been sent from a real source.
The quantity you’ll move as earnest money will also depend upon elements such as the present market, the regional policies and limitations in your state, what’s traditional in your market, or even what the seller needs. If you’ve consisted of a home examination contingency in your offer and the home examination exposes structural damage or major problems, you may choose to cancel the home purchase and your down payment deposit will be repaid. Other things you can do to secure your earnest money consist of: Using an escrow account: Never provide funds straight to a home seller, or wire the money to the genuine estate legal agent, title or brokerage company without first validating the wire guidelines have really been sent out from a genuine source.