Step 10 to Buying a Home: Your Earnest Money Check
Now that your offer has been accepted by the seller and we have an executed contract, it’s time to drop off your earnest money check. Your earnest money check needs to be mailed immediately or dropped off within 2 business days of binding contract date. So, what is earnest money? Click here to read a great article explaining earnest money.
We will email you details on how much earnest money is due and where and when to send your check. Be sure to include the property address you are purchasing in the memo line of your check followed by “EM” so the recipient knows it is earnest money for that particular property. You can mail your earnest money check immediately to the recipient or drop off in person during regular business hours. If you drop off earnest money, please get a receipt from the recipient. The seller’s agent will be confirming receipt of your earnest money. If earnest money is not received by the date agreed to in the contract, your agent will typically receive a notification from the seller’s agent. However, please note that if earnest money is not received by the due date, your purchase agreement could be in jeopardy. All to say, earnest money is very important and should be delivered promptly. Please let us know that you have sent your earnest money to the appropriate party and retain a copy of your check for your records in case you need to verify this information. Please let us know how and when you have delivered your earnest money.
The amount you send as earnest money will be kept in a special escrow account and held until closing when the funds will be credited to your purchase. The only way you can forfeit this earnest money is if you default on your purchase agreement. Part of my job as your Realtor is to remind you of important timelines and terms to keep you in compliance with this agreement. Should you need to have a refund of your earnest money, a request for release must be completed and signed and sent to the holder of the funds. Earnest money funds are released per the terms of your purchase agreement.
If you have any questions about earnest money, call or text (615) 618-9966.