Earnest Money

Dated: 02/28/2014

Views: 6983

First of all, my name is Kendall West and I the newest realtors at Central Realty. I am a hard worker, who works from home with first time buyers. My blogs are centered on issues or questions, I have found that comes up when discussing the processes of purchasing a house. This blog is going to be about earnest money. Earnest money – Is simply a deposit made by you the buyer to the seller.  This transaction shows the seller that you are serious about buying his property.  This transaction is called a good faith transaction. This real estate transaction allows the buyer additional time to seek financing on the property.  This transaction is also called “a good faith” transaction. The question most buyers have is “What happens to my money?”  Earnest money is typically held jointly by the seller and buyer in a trust or escrow account. - http://www.investopedia.com/terms/e/earnest-money.asp In earnest this is almost right in Ohio, the first part is correct but the last part is wrong. In Ohio, the earnest money is held by either broker or either title company. It’s normally negotiated between the buyer and seller. When it is finally agreed by both parties, then the money goes into a non-baring interest account which is required by Ohio law. The deposit, it can be made by cashier’s check or personal check however some organizations will not accept personal checks. The deposit’s can range from $250 up to $10,000 or more depending on the price of the property that is being bought. To get your monies returned in Ohio, you get your money back if you buyer: (1) Complete the transaction. If it is a cash deal you can have it either applied to the cost of the property or receives a check it closing. If it is a mortgage transaction you will receive a check at closing. (2). If the transaction falls apart in the state of Ohio, the buyer has to fill out a form to receive their money back. Now, here lies the problem, both parties have to agree to give the money back. If one party does not want the money returned the broker cannot give the money back unless both parties agree.  The two ways to get your money returned is a court order or one party has to wait two years by Ohio law to get their money back. If you think that you’re going to do a deal without putting down earnest money down your wasting your time. The first questions I ask all my clients is, “How much do you have saved to put down on house?”  Normally, I have my clients put down at least $500 and this normally makes the seller happy. If you have any question please email at kendall@realtydayton.com and I would happy to answer them for you.
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Kendall West

Real Estate Sales Associate At Realty Central....

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