Earnest Money - Posted by Hutch

Posted by Jim C on February 08, 2001 at 23:56:20:

As far as I know, even $1 is enough for option consideration. I’ve even heard on Bill Bronchick’s L/O Workshop that covering all of the maintenance on the house is enough for option consideration.

I’m no expert, but as far as I know, that is enough.


Jim C

Earnest Money - Posted by Hutch

Posted by Hutch on February 08, 2001 at 21:33:59:

I have a question and really I think I know the answer. What is a “normal” earnest money deposit amount? The answer that I think I will probally get is "as little as possible :slight_smile: But in reality what is customary? Is there a minimum amount required by law? I know in the case of lease options considerations it has to be a “real and proper amount for concideration” or something like that. But on sales contracts if I put up $50 or $100 would this be enough if I had to go to court to sure for specific perfomance if the seller found a better offer after signing the contract?

I hope to avoid instances like this but I do wnat to make sure and do “due CYA” :slight_smile:

Hutch in Oklahoma

Re: Earnest Money - Posted by Harley-CA

Posted by Harley-CA on February 10, 2001 at 24:26:45:


I’ve even put a “promissory note” in as earnest money. You can find them at just about any office supply store. I just put any amount of money, like $1000 and give myself plent of room to get out of the deal if things don’t work out. I use “subject to” clauses like “subject to me getting financing” or “subject to my partner’s approval of the offer within 15 days” or something like that. Promissory notes work wonders. Make sure you really can deliver on your promissory note though.


Re: Earnest Money - Posted by CurtNY

Posted by CurtNY on February 09, 2001 at 08:48:11:

By law a contract must have “consideration” in order to be binding. That consideration can be anything, money, maintenance etc… it’s been my experience you should give $10 for FSBO’s but I wouldn’t try that with a realtor. I usually offer $100 when submitting to a realtor (they always have a problem with that amount but its just that… their problem!). If I find a great deal and don’t want some useless realtor messing up the offer I’ll give $500 (but never more!). Hope this helps.