Re: Earnest Money - Posted by JoeS
Posted by JoeS on February 17, 2001 at 05:56:59:
Contract law varies from state to state, so check your local laws. In my state, $1.00 is required to make a contract for R.E. valid. Local customs by realtors assume you the buyer will plonk down $1,000 as earnest money, non-refundable if you do not meet all that is said in the contract. I ALWAYS use my own contract to buy, and my own contract to sell. I had my attorney review these for legality. Remember, a contract is a written meeting of the minds of a buyer and seller. There are no “usual” clauses in a contract, only what the parties involved agree on. I have even had go-arounds with attornies on the subject of who holds the earnest money. So, the more versed in contract law you are, the better.