Posted by ken in sc on April 25, 2000 at 11:10:01:
Because it makes the sellers feel like they have a deal. What I mean is by all this is that we have a contract in writing that we both agree on. I just don’t give them any earnest money. If they insist, I will deposit it with my attorney who will close. But they never insist. What I am really saying is that I would never sue on the contract, so I don’t care if it is legally binding or not. Before closing, the most I will have spent is $100 - $200 on title search and maybe an inspection. Not much to lose. We sign a contract and I act in good faith and most of the time it closes. I think if you tried to do business without a contract the seller would not think it is a “real deal”. Also, just 'cause a contract is not “legaly binding” doesn’t mean you can’t close on it. I do it all the time. I just don’t like to wind up like you with someone having $1,000 earnest money that I can’t get back, that’s all.