Can A Seller Keep Buyers Earnest Money?

If you are involved in a real estate purchase and sale agreement where a potential buyer has backed out of an offer to purchase a property, you probably want to know who can keep buyers earnest money that was offered as part of their purchase offer. What is Earnest Money? Earnest money is a deposit a home buyer submits with an offer to buy a property.  The purpose is to show a buyer that you are serious about purchasing the property and the higher the earnest money amount is, the more likely it is that your offer will be accepted.  “Earnest” is an old fashioned word to mean your “serious” about purchasing a property.  The earnest money funds can also be referred to as a “good faith” deposit and are often held by a third party escrow company as part of the purchase and sale transaction. How Much Should A Buyer Offer in Earnest Money? The amount to offer in earnest money really depends on the type of transaction you are involved…

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