Earnest money before inspection

By: Sistem Date: 31.05.2017

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Can I deposit Earnest Money after inspection of the home? Highest rated Recent Oldest. Jeremy Locke , Mortgage Broker Or Lender, Kirkland, WA.

Thu Sep 4, The EMD is part of the written sales contract, which should state when the EMD needs to be deposited by with the escrow company. Tammy Hayes , Agent, Port Charlotte, FL.

earnest money and home inspection question (disclosure, documents, agents, price) - Real Estate -Brokers, appraisals, development, lease, investing, relocation, apartments, houses, condos, values, mortgages, loans - City-Data Forum

Tue Sep 2, The earnest money deposit is written as part of the contract. So whatever the buyer and seller both sign and agree upon is what can be done. Alan May , Agent, Evanston, IL.

earnest money before inspection

You can deposit earnest money whenever you and the seller have agreed to deposit earnest money. Alvin King , Agent, Las Vegas, NV.

Should I get a home inspection before signing a contract to buy the house?

Sat Aug 30, JJ, It is not uncommon for Earnest Money to be deposited at A later date, provided there is an agreement between the Buyer and Seller, incorporated into the contract. Kary Krismer , Agent, Renton, WA.

What Are The 3 Ways Buyers Can Lose Their Earnest Money Deposit?

The deposit of the earnest money is controlled by the contract. You can modify the standard language in the NWMLS forms to provided for a delayed deposit of the earnest money after the removal of the inspection contingency.

We routinely do that when we represent buyers, but sometimes the sellers will object to that. Technically it really shouldn't matter because the inspection contingency form uses an entirely subjective standard.

We once had a buyer back out due to a structural defect in the garage area and it took a couple of days to get the money back because the seller's boyfriend didn't think the issue was real. About a month later they wanted to see if our buyers would be interested if they fixed the defect. Unreasonable people like that are the reason we like to delay the deposit. The other option is to work through a firm that has a trust account.

Very few firms have a trust account any more, but in theory it would be easier to get your money back when you have an unreasonable seller with no valid reason to delay the return of the money. Basically the firm can decide to take the risk of being sued, which an escrow company is less likely to do. So if this is a concern to you, you might find a buyer's agent where the brokerage firm maintains a trust account. As to Thana's comment, while she is correct that you could provide to have no earnest money, I would not attempt that under the NWMLS contracts.

One choice in the standard contract is the seller's remedy in the event of buyer breach, and most contracts are written limiting the seller to forfeiture of the earnest money.

If there were no earnest money then it may be possible that they could sue you for actual damages even if you selected forfeiture of earnest money.

Actual damages could be far larger than the likely size of any earnest money, so without an earnest money amount you would need to draft alternative liquidated damages language.. Rather than a sign of your good faith, I view the earnest money as more of a liquidated damages amount, and necessary for that reason.

This answer is not intended to give specific legal advice. To obtain legal advice for specific situations a person would need to contact an attorney who would agree to review their situations and facts. Thana Fauteux , Agent, Federal Way, WA. Fri Aug 29, Technically earnest money can be given at any time before closing, or not at all, as earnest money is not actually required.

The purpose of earnest money is to show how much good faith you have in going through with a purchase, so it is in your best interest to give your earnest money as soon as possible to show the seller's how serious you are about buying their home. In other words, it should be deposited once the purchase and sale agreement has been signed by both parties. Seller refuses to release earnest money after buyer withdrew from contract using the home inspection contingency.

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earnest money before inspection

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