Earnest Money Contract
Official Real Estate - Earnest Money Contract
FIRST, THE BASICS:The Earnest Money Contract is another term for an Offer and Acceptance Contract. This contract is secured by the payment or deposit of a sum of money. The earnest money essentially represents the buyer’s sincerity in attempting to purchase the property.
If the offer to purchase the property is not accepted by the seller, the earnest money is totally refundable. As a general rule, this also applies if some condition of the contract is not satisfied. If, however, all terms of the contract are satisfied, the earnest money is then applied in full towards the purchase price of the property.
This particular Form is simple and straightforward. The form provides for most contingencies related to disbursement of the earnest money and terms and conditions of the purchase. There is NO provision for a Real Estate Agent involvement.