How Do I get My Earnest Money Back from a FSBO? - I Love Hunters Creek

There should be an earnest money agreement check with the contract when a buyer makes an offer on your house. On this page, we will cover;. I'm going to assume that you know that the earnest money clause forms part of the Purchase and Sales Agreement. If you are looking for something else to do with Contracts, Forms and Clauses, please select any of the thumbnail photo links below. As a for sale by owner, you should always have some of these forms on hand, which should include a clause concerning the earnest money, or "deposit".

I have searched and found a couple of super great sites to obtain these for sale by owner contract forms. For a list of these websites and why I selected them, please proceed to; Real Estate Contract Forms for the for sale by owner.

First of all, an earnest money contract has nothing to do with the down payment on a house. However, it may be used for that purpose at closing. The actual term "earnest money agreement" may also not be in the real estate terminology where you reside. It could be called simply an offer deposit, or a good faith deposit, or some other name.

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Whatever it's called in your area, they are for the following purposes. How Much Does the Deposit HAVE to Be? I've also written purchase and sales agreements in the past that just used the words, "In consideration thereof", with no money attached what-so-ever.

So, unless you have some different real estate by-law that says there must be a certain amount or percentage, just about anything goes. The amount of the earnest money agreement is basically up to you. That being said, keep the following in mind.

I have viewed your website and love the resources that you have provided to everyone. Sure you could sue the buyer, but will you? Would it be worth the time and investment you would spend trying to collect? The bigger the amount of the earnest money agreement, the better, within reason.

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The longer the possession date was in the future, the larger I wanted that check to be. Where is the Money Held? The first place the earnest money agreement should NOT be held is in your personal checking account. That would be totally and absolutely unfair to the buyer.

The reason is, you as the seller would have total control of that money. Let's say the buyer opted out of the contract because a clause that could not be satisfied through no fault of the buyer. You might just take the step of holding the monies that should rightfully be returned to the buyer. The good faith deposit when you are for sale by owner should be held in a trust account that exist for that exact purpose, by the seller's lawyer.

That means your lawyer Mr. That is my advice. This way, your real estate lawyer can deal with the funds in a fair and legal way, whatever situation may arise, in an impartial manner. Just as a side note: The earnest money agreement deposit, usually becomes part of the down payment on the house being purchased at the closing possession date.

On occasion, the earnest money agreement may not include a deposit, immediately following the offer being accepted. The Buyer has a house to sell before they can buy your house. They may make the trust deposit subject to the unconditional sale of their property. They may write in that they will make that money available, within 72 hours after that condition is met. A first-time buyer may have a really good income but be cash poor and buying their first house, with no money down.

Many times a first-time buyer may be able to get help from parents or another relative. There is no harm in asking them if this is possible. Here is another site explaining Earnest Money Deposits.

Remember, you should always have those famous clauses that the offer is subject to the seller's and buyer's lawyer approval. If you haven't seen this clause yet, you can find it on this page. Subject to Lawyer Approval Clause. Go to Thumbnail Photo Links.

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Real Estate Counter Offers. Return to Home Page. How Much Should it Be? A Visitor's Comment I have viewed your website and love the resources that you have provided to everyone. You will have to make a judgment call, whether to accept a low earnest money agreement. Sell My House FSBO.

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