Easily Delete Selected Option to the Earnest Money Promissory Note

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How to Delete Selected Option to 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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What happens if buyer does not deposit earnest money in Pennsylvania?

..the earnest money must be paid within 3 days of the acceptance of this offer. The failure to pay the earnest money within this 3 day time period shall make the Sellers acceptance null and void without any further action of the Sellers or notice to the Buyers.

Can earnest money be forfeited?

Earnest money is part of the purchase price when the transaction goes forward: it is forfeited when the transaction falls through, by reason of the fault or failure of the vendee.

How do I show a promissory note is paid in full?

Place a signature beside the paid in full notation. The lender must sign and date the front of the promissory note beside the paid in full notation. The date the lender includes on the promissory note should be the date on which the borrower made the final payment on the loan.

What is the difference between earnest money and a deposit?

Unlike a security deposit, earnest money deposits are not extra fees. Earnest money is whats known as a consideration in real estate. Consideration only means that youre putting something of value up as a deposit to be forfeited if you cannot follow through. Most often, this is some amount of money, but not always.

Why is earnest money refundable?

Earnest money gets returned if something goes awry during the appraisal that was predetermined in the contract. This could include an appraisal price that is lower than the sale price, or if there is a docHub flaw with the house.

What is earnest money in the form of a promissory note?

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 I delete a promissory note?

Release of promissory note instructions Write in the identifying information about the promissory note, including the original amount and its effective date. If there is only one noteholder signing the release, delete all references to we or to more than one noteholder.

Who keeps earnest money if seller backs out?

The earnest money may be held by the sellers real estate broker, but the money may also be held in escrow by a third-party title company, lawyer, or bank. The purchase and sale contract specifies where the deposit is held.

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