OfflineHello,
I am curious about my earnest money obligations in an assignment deal. Am I obligated to put earnest money down when I sign the original purchase agreement with the seller? If so, how can I walk away without having lost any money in the event that I fail to find a buyer?
Thanks, Jeff
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Jim - You can do deals with no deposit depending on where you live. I have done many... You should have some sort of earnest money exchange to strengthen and legalize your deal ( so to speak ) Now.... depending on where you live either the buyer or seller gets to pick the closing company.... I get to choose...... so my deposit is always made out to that attorney or title company... Never Ever to the seller...... Now " GET OUT "
that would be your escape clause.... there are many to pick from... you need to explain why you need this clause..... again..... so agents understand and a seller can see why you would need this clause. Now...... once a buyer comes along.... who do they make their deposit check out to????
Hope that helped.... Darren
Thank you!
Jeff,
One of the easy ways out of the contract without loosing your deposit is that the sale is subject to an inspection satisfactory to the buyer. You can ask for a specific amount of time to have your inspection done. This is the time frame you want to get the property sold by. if you can not find a buyer than let the seller know (by the specified date) that the inspection is not satisfactory to you and they have to return your deposit. Also, if it is a private owned property the deposit can be $1.00.
Good luck!
John W.
John and Julie Wakefield
JCW Properties, LLC
Great info John, much appreciated.