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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.
Joel and Connie Gravina Century 21 Select Group 1256 Route 507, Suite #1 Greentown, PA 18426 Toll Free: 800-227-1233 Phone: 570-226-1755 Cell: 570-241-4674 Fax: 570-226-4460 Email: jcgravina@NUMBER1EXPERT.com
We are the Lake Wallenpaupack Specialists for Pike and Wayne Counties. Our team of professionals takes pride in representing recreational properties, fine homes, estates and commercial properties in the Lake Region.
866-744-1776
www.WallenpaupackProperties.com
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NUMBER1EXPERT in real estate for Lake Wallenpaupack, Pocono Mountains and Hawley, Pennsylvania
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