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