Posted by Rob FL on February 21, 1999 at 15:58:34:
She probably means consideration is required. If earnest money were required, then it might make all types of creative property transfers illegal.
Earnest Money Deposits - Posted by BR2
Posted by BR2 on February 21, 1999 at 14:29:47:
When dealing with a realtor are earnest money deposits negotiable?
Read John Beck’s Article… - Posted by J.P. Vaughan
Posted by J.P. Vaughan on February 21, 1999 at 16:45:20:
“The Difference Between Earnest Money and Consideration”
Re: Earnest Money Deposits - Posted by kathleen
Posted by kathleen on February 21, 1999 at 15:23:11:
Yes, earnest money is what you decide to put down. However, the seller can ask for additional earnest money as part of the counter offer.
Re: Earnest Money Deposits - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 21, 1999 at 15:00:43:
Absolutely. You should put down as much or as little as you feel necessary. As a matter of fact, earnest money isn’t legally required for a valid contract. I normally give a $100 earnest money deposit only after I have an accepted contract, and it is stated as such in my contract. However, most realtors are taught to get as much earnest money as possible. Make sure you stay in control of your offer and not allow an agent to dictate the conditions.
Stacy
Re: Earnest Money Deposits - Posted by kathleen
Posted by kathleen on February 21, 1999 at 15:27:11:
I’m not sure if it is just different areas of the country, but here in Md the offer is NOT legal if there is no earnest money. It can be $1.00 or it can be something else of value, but it is required. Also, as a realtor, no one has ever taught me to get as much earnest money as possible. If I am representing the buyer, I would advise him/her to limit the risk with a low earnest money offer.
Re: Earnest Money Deposits - Posted by Jim IL
Posted by Jim IL on February 21, 1999 at 21:45:31:
I had the first few agents I talked to tell me that earnest money was a “legal requirement” here in Illinois. Of course, ever the skeptic, I doubted them, and checked with my friend who is an agent. He agreed with them, but said that his “source” for this info was his broker. I then called my lawyer and asked that question, and he said “why are you wasting my time?” (as he laughed) and said “NO!!!”.
So, now we do not offer ANY earnest money, only “consideration money”, which is due AFTER the offer is accepted. (and I usually put in the contract that this can be done within 3 days of the acceptance.)
So, check with someone with legal knowledge on this, I find it hard to believe.
Thanks,
Jim
Re: Earnest Money Deposits - Posted by J.P. Vaughan
Posted by J.P. Vaughan on February 21, 1999 at 16:48:24:
That is not true unless your state has abrogated hundreds
of years of contract law. See John Beck’s article,
“The Difference Between Consideration and Earnest Money.”
It’s on the How-To Articles page.
JP Vaughan
Re: Required? - Posted by Stacy (AZ)
Posted by Stacy (AZ) on February 21, 1999 at 15:45:28:
I would be very surprised if earnest money was required in MD. Heaven knows I’ve been wrong before, but I think this is the first time I’ve heard of earnest money being required, legally, for a valid offer to purchase real estate. But, hey, no need to sweat the small stuff if $1 is all that’s needed.
If you were representing the seller, wouldn’t you try to get as much earnest money as possible, for their security and protection?
Speaking of limiting risk if you represent the buyer, do you also ammend the standard realtor’s contract to limit the buyer’s liability for non-performace of the contract to the earnest money deposit as full liquidated damages?
Stacy