Easily Insert Option Field into the Earnest Money Promissory Note

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How to Insert Option Field into the Earnest Money Promissory Note

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hi Im Annie Fitzsimmons Im your Washington Realtors Legal Hotline lawyer and this video is probably going to be most appropriately gauged towards our should I say more experienced members I wouldnt describe you as old but I would say that the practice in which some of you engage is a very old practice antiquated even and you need to dispense with it and that is the practice of using promissory notes for earnest money stop doing that why do you need a promissory note for earnest money let me tell you the reason most people sell me we need a promissory note because buyer doesnt want to have to deliver earnest money by the second day following mutual acceptance they need three or four or five days so they can go back to wherever they live and get money out of their account and send it in or they want to wait until the inspection contingency has been satisfied or waived or whatever other reason would justify a delayed deposit of the earnest money fine I dont care when the department w

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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 does earnest money and option fee mean?

Option fees are non-refundable and only have cancellation rights for a pre-determined length of time. Earnest money payments are more expensive but can apply to your closing costs or give you more power during a real estate transaction.

How do you use a promissory note for earnest money?

The owner must be aware that the earnest money deposit will be made in the form of a promissory note (i.e., not in cash) before it accepts the purchase offer. This fact must also be stated clearly in the purchase agreement itself.

What is Option vs earnest money?

Option fees are non-refundable and only have cancellation rights for a pre-determined length of time. Earnest money payments are more expensive but can apply to your closing costs or give you more power during a real estate transaction.

Is an option contract also called earnest money?

It said that earnest money and option money are not the same but distinguished thus: (a) earnest money is part of the purchase price, while option money is the money given as a distinct consideration for an option contract; (b) earnest money is given only where there is already a sale, while option money applies to a

What is an earnest money deposit with an option?

Earnest money is deposited with the title company. If the buyer terminates the contact for one of the reasons they are allowed to in the contract they will receive a refund of the earnest money. Option money is given directly to the seller.

What is an option deposit?

Option Deposit means any payment of a cash deposit or delivery of a letter of credit in conjunction with a contract committing a seller to deliver title to all or a portion of a land parcel or finished lots, on specified terms. Option Deposit means a deposit by Buyer with Bombardier of U.S.

What is an example of an option money?

Lets say an investor holds a call option on Bank of America (BAC) stock with a strike price of $30. The shares currently trade at $33. Therefore, the option contract is in the money. The investor can buy the stock for $30 and immediately sell it for $33 for a gain of $3 per share.

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Insert Option Field into the Earnest Money Promissory Note