When you make an offer on a house, it is accompanied by an earnest money check. Earnest money is intended to demonstrate that you are "in earnest" about purchasing the property. The earnest money check is made out to the listing company. What happens to this check?

The party holding the check acts as an escrow agent until you go into closing. At that time you will receive credit for the amount of your check against the down payment and closing costs. Real estate brokers are required by law to keep escrow funds in a special account. These funds cannot be used to pay any other expenses associated with the sale. If you don't complete the transaction, the purchase contract determines the disposition of your earnest money funds. Be sure to review this part of your contract with the real estate agent.

If you are in default on your agreement, the funds may go to the sellers, so be sure that you understand the deadlines in order to avoid breach of contract and forfeiture of your deposit. If you have any questions, be sure to ask your real estate agent for advice.

	See All Tips In The "Making An Offer" Category >
	See Complete Library Of Hundreds Of Tips In 30+ Categories >

Broadcast Realty
Your Local Real Estate Experts
3620 Wyoming NE Suite 100
Albuquerque, NM 87111
Main: 505-822-8864
Fax: 888-440-5809
Toll Free:: 800-888-3581
BroadcastRealty@gmail.com
realtyperson@gmail.com

Broadcast Realty is a locally owned real estate company. We use every possible marketing tool to either SELL a Client`s home or to aid a BUYER in getting the RIGHT home at the RIGHT price. Please contact us by email and/or phone at ANY TIME. Thank You...and WE HOPE TO HEAR FROM YOU SOON!

www.broadcastrealty.com is brought to you by Broadcast Realty, real estate for
Albuquerque, Rio Rancho, East Mountains and Los Lunas, New Mexico

Read Broadcast Realty's Privacy Guarantee, Terms of Service, and Free & Without Obligation Pledge