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What is Earnest Money

Earnest Money

What Is Earnest Money?
  • A good faith buyer deposit held in escrow by a third party, typically a title company.
  • Typically a personal check, money order, cashiers check or other good funds as defined in the property listing.
  • Your serious financial commitment in pursuing a real estate transaction with monetary penalties if you default.
  • Loss of your deposit can occur should you default on your transaction. 
  • Typically you will see an earnest money amount of approx 1%+ of the listing price as set by the seller.
  • Your money held in escrow which will normally be applied as part of the down payment or closing costs.
  • Typically is delivered to your agent to be delivered to the title company within a few days of contract ratification. 

View a sample Contract to Buy & Sell Colorado Real Estate in detail. The earnest money specifics are in section 4.3, 5.2, 6, and 25


John Brady

Broker Associate

Telephone

(720) 281-1716

Email

Jbradx@comcast.net
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