what is earnest money in real estate

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Deposit to buy a home

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  • What is an earnest money deposit in real estate?

  • Earnest money is a deposit made to a seller indicating the buyer’s good faith in an arrangement. Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. … Earnest money is typically held jointly by the seller and buyer in a trust or escrow account.

  • What is’earnest money’in real estate?

  • What is ‘Earnest Money’. Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. Earnest money is typically held jointly by the seller and buyer in a trust or escrow account. Earnest money is also known as a good faith money.

  • Is earnest money needed to buy a house?

  • Earnest money is not a requirement of any offer to purchase a home. Earnest money does show that the buyer is serious and willing to put forward some money up front and is not extra money over and above what is being offered to buy the home for.

  • What is an earnest money contract?

  • A contract is written up during the exchange of the earnest money that outlines the conditions for refunding the amount. Earnest money deposits can be anywhere from 1?0% of the sales price, depending mostly on market interest.

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