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While earnest money is not a requirement it is highly recommended since it can show the level of interest a buyer has. It is in essence a down payment put towards the purchase of a home. Earnest money can be refundable depending on the terms of the real estate purchase contract.
Will Earnest Money be Refunded if a Buyer Cancels? If a buyer cancels a sales contract, the earnest money will not be returned to the buyer. However, if the contract is cancelled by the buyer after the option period the earnest money deposit is generally considered non-refundable.
In Kentucky, a contract for the sale of real property must be in writing to satisfy the Statute of Frauds. Verbal negotiations or verbal contracts are not binding on either party. If you and the other party have agreed upon a price, etc., over the phone and one party changes his or her mind, there is no deal.
Earnest money protects the seller if the buyer backs out. It's typically around 1 \u2013 3% of the sale price and is held in an escrow account until the deal is complete.
Capable parties. To be a capable party, the person must have the legal capacity to contract. ... Lawful object. A contract must be entered into for a legal purpose. ... Consideration. Normally when we think of consideration we think of money, but consideration can be anything of value. ... Offer and acceptance.
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People also ask

Yes. A seller can back out of an accepted offer or before closing, as long as there are no specific clauses that state otherwise. That being said, whether or not a seller can back out of a contingent offer depends on the contract that was written and what is mentioned in it.
Can a home seller back out after a sale? Yes, a home seller can back out of a real estate contract, but only in instances in which they're willing to compensate the buyer for their trouble, or they sold to a buyer who is also experiencing buyer's remorse.
In Kentucky, a seller can get out of a real estate contract if the buyer's contingencies are not met\u2014these include financial, appraisal, inspection, insurance, or home sale contingencies agreed to in the contract. Sellers might have additional exit opportunities with unique situations also such as an estate sale.
In Kentucky, a contract for the sale of real property must be in writing to satisfy the Statute of Frauds. Verbal negotiations or verbal contracts are not binding on either party. If you and the other party have agreed upon a price, etc., over the phone and one party changes his or her mind, there is no deal.
REQUIREMENTS OF A REAL ESTATE CONTRACT The contract must be in writing and there must be an offer and an acceptance of said offer. ... The contract must have mutual assent and legal purpose. ... The contract must identify all of the parties involved. ... The contract must identify the subject property.

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