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Who normally holds the earnest money?

The common practice in California, for example, is for the escrow company, rather than the selling or listing agent, to hold a buyers earnest money deposit. Only after the escrow is cancelled, will the seller receive the earnest money deposit.

How do you get earnest money back in Colorado?

Yes, earnest money in Colorado can be refunded. If a sale does not go through for any reason, the earnest money may either be kept by the seller or refunded to the buyer, depending on the contracts stipulations.

Who keeps earnest money if deal falls through?

If all the buyers legitimate deadlines have expired and the buyer is considered to be in default of the contract, the seller can elect to keep the earnest money as liquidated damages and agree to cancel the contract, says Horner.

Who should hold the earnest money?

A buyer typically will pay earnest money via a certified check, personal check or wire transfer. The funds are then deposited into an escrow account and held by a representative agreed to by the buyer or seller, whether thats an attorney, real estate agent, agent of a title company or another third party.

Who holds earnest money in Colorado?

In Colorado, the earnest money deposit is generally held by a title company.

earnest money receipt

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What is a release of earnest money form?

A release of earnest money addendum is a document attached to a purchase agreement to relay how a buyers earnest money deposit will be distributed. The form instructs the agent holding the deposit to distribute the funds held in escrow.

What is the earnest money rule in Colorado?

The amount of earnest money that a buyer must deposit varies depending on what type of property they are buying. Most typically, homebuyers in Colorado will be expected to provide between 1-3% of the purchase price as earnest money for residential properties.

How is earnest money released?

The purchase and sale agreement details the process to get the EMD back from escrow. The buyers agent must submit a cancellation of escrow form signed by the buyer. After both parties mutually cancel the agreement, escrow is instructed to refund the earnest money deposit to the buyers.

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