Make an Earnest Money Deposit
Purchase contracts typically contain a good faith deposit, called an earnest money deposit. It shows a buyer is committed to the transaction when a buyer is willing to place a deposit into escrow. Most earnest money deposits are refundable.
- When your offer is accepted, deposit your earnest money check with the appropriate party. Ask your agent who the check gets made out to, it usually goes to the buyers agent brokerage.
- Do not ever make your check payable to the seller. I don’t care what anybody says, do not pay the seller directly.
- Your offer should contain contingencies ( inspection or financing etc. ) that will return your earnest money deposit to you if you cancel the contract. Usually, the contingency periods will specify a time period for performance.