The earnest money is the deposit money given to the seller or his agent by the potential buyer upon the signing of the agreement of sale to show that he is serious about buying the house. If the sale goes through, the earnest money is applied against the down payment. If the sale does not go through, the earnest money deposit will be forfeited to the seller unless the purchase contract expressly provides conditions for its return to the buyer. Now that you have the textbook description of earnest money read this article http://www.creonline.com/art-111.htm
Posted by J-Lingle on January 24, 2001 at 06:12:43:
Ok guys for all the E-mails i got i really REALLY Apprieciate all the info you all gave me It Helped TONS…Specially You JohnBoy thanks Alot…I’ve Been reading Threads on Flipping and How-To-Articles for the past like 14 hours Rubs my Eyes i have A Few Questions that someone might be able to Help with me…1st.Anybody have a Good Assignment of Contract Form Or Buying Contract whatever the Term is for the contract that i have the Homeowner Sign before i goto the closing table…2nd…What does a earnest Deposit mean?..And in a But Shell I NEED A DOCUMENT TO TIE UP OR BUY HOUSE…Can Anyone help me Please?