
The Earnest Money Deposit
At the time a written offer on the property you wish to buy is
initiated, you will generally be required by the seller to include a deposit in the form
of a personal check, cashier's check, or cash. The amount deposited will be kept in the
trust account of the Title or Escrow company and is not turned
over to the seller. This money essentially represents your sincerity in attempting to
purchase the home, makes the contract "legal" if accepted, and is totally refundable if the offer is
not accepted, or if some
condition of the contract is not satisfied by the Seller (assuming the Buyer
doesn't default). If everything proceeds smoothly, the deposit
applies in full toward the purchase price at closing.
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