Earnest Money

When you present an offer to purchase property, the seller will want the buyer to include a deposit or "earnest money." The buyer usually pays the earnest money by personal check, money order, or cashier's check. This is usually in the amount of 3% of the purchase price, however, this is negotiable.

This money is a good faith deposit and represents the buyer's sincerity in purchasing the property.  The earnest money is deposited in a trust account with the title company and not given to the seller.

The earnest money will be applied toward the purchase price or down payment at closing.  The money is refundable if the contract is not accepted, or if conditions of the contract are not satisfied.