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Earnest money is returned to the buyer at closing. The buyer can choose whether to apply the funds toward a down payment, closing costs or other settlement costs. But in some cases, if certain provisions of the purchase contract are broken, the buyer will have to forfeit the earnest money and the seller will keep it.
It depends on your contract terms. Earnest money is typically refundable if contingenciessuch as financing, inspections, or appraisalsarent met. However, if you back out without a valid contractual reason, you may forfeit it.
Due diligence money is non-refundable, whereas earnest money can be refunded. If youre buying it ``as-is it doesnt make sense to offer $50k in due diligence money, as youre not going to sway the seller with inspections that may otherwise favor your buying process.
An earnest money contract is a legally binding document between parties made during the exchange of the earnest money. Earnest money is a monetary deposit made by the buyer in a home loan or real property transaction, and its typically held in escrow by a third party.
Yes you can. If you change your mind when you are within the timeframe of the option period, you get your earnest money deposit back. If its outside that. You could lose your earnest money.
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Typically, earnest money is used to show that you are committed to purchasing the property and is held in escrow until closing. If you decide to back out of the contract for reasons not covered by contingencies in the contract, such as financing or inspection contingencies, you may forfeit your earnest money.
Earnest money is typically around 1% 3% of the sale price and is held in an escrow account until the deal is complete. The exact amount depends on whats customary in your market.
It depends on why you are backing out of the deal. There are certain contingencies covered in most real estate contracts protecting the buyer. If you back out of the contract for an approved contingency, you will get your earnest money back.

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