Easily Delete Alternative Choice into the Earnest Money Promissory Note

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How to Delete Alternative Choice into the Earnest Money Promissory Note

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- Hey everyone, Paul Vojchehoske here and welcome to The Real Estate Classroom YouTube channel. Just a place that if youre studying for your real estate exam, we help you pass that exam the first time. Okay, in todays real estate exam prep video, were gonna discuss a concept that you have to know called earnest money deposit. I actually received an email from a student that said, Hey, when are you gonna do a video on earnest money deposits? And quite frankly, I thought I already had but it turns out that I hadnt, so I put it to the top of the list. So this week, the topic is earnest money deposits. Okay, so what is an earnest money deposit? How does it interject itself into the entire real estate transaction, and what are the things that you have to know as not only a real estate professional, but more importantly as a student studying for the exam. So understand that earnest money or the earnest deposit is typically money, all right? And when I say money, it comes in the form of

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Can a promissory note be used as earnest money to be paid at closing?

Although most sellers are likely to require that earnest money be in the form of cash, check, or money order, they might also agree to accept a promissory note. The drawback for the seller is the possibility of having to file a lawsuit to collect on the note.

What is the earnest money promissory note?

An earnest promissory note shows good faith commitment to purchase an asset and outlines the aspects of the purchase agreement between a buyer and seller.

What forms may earnest money take?

Acceptable forms of earnest money that home sellers might accept include personal checks, certified checks, ACH bank transfers and wire transfers.

Can you use a promissory note for earnest money deposit?

Earnest money deposits can take any form agreed to by the seller. In some cases, the buyer will offer an earnest money promissory note instead of making a direct payment. This gives the buyer some assurance that it will not lose the money deposited if the deal falls through.

How do you use a promissory note in real estate?

A home mortgage secures a promissory note with the title to the property as collateral. This is done in case the lender ever needs to foreclose and sell the property because the homeowner did not make loan payments. Your lender will keep the original promissory note until your loan is paid off.

Can you use a promissory note for earnest money deposit?

Earnest money deposits can take any form agreed to by the seller. In some cases, the buyer will offer an earnest money promissory note instead of making a direct payment. This gives the buyer some assurance that it will not lose the money deposited if the deal falls through.

What is the earnest money promissory note?

An earnest promissory note shows good faith commitment to purchase an asset and outlines the aspects of the purchase agreement between a buyer and seller.

What happens if the buyer fails to redeem the earnest money promissory note?

The Promissory Note redemption date can be extended only if agreed upon in writing by both parties with a signed addendum. If the Buyer does not redeem the Note in time, is the contract Null and Void? No. If the buyer does not redeem the Note in time, the buyer is in bdocHub of the contract, but not null and void.

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Delete Alternative Choice into the Earnest Money Promissory Note

Reduce time spent on document administration and Delete Alternative Choice into the Earnest Money Promissory Note with DocHub

A step-by-step instructions on the way to Delete Alternative Choice into the Earnest Money Promissory Note

PDF editing simplified with DocHub

Drive efficiency with the DocHub add-on for Google Workspace

How to Delete Alternative Choice into the Earnest Money Promissory Note

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Got questions?

Can a promissory note be used as earnest money to be paid at closing?

What is the earnest money promissory note?

What forms may earnest money take?

Can you use a promissory note for earnest money deposit?

How do you use a promissory note in real estate?

Can you use a promissory note for earnest money deposit?

What is the earnest money promissory note?

What happens if the buyer fails to redeem the earnest money promissory note?

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