need a little help [Archive]

milkmania

10-21-2006, 06:16 PM

looking at 15 acres.....
and I do not have a clue about buying/selling property!

what is the basic concept of earnest money?
it was loosely explaind to me that you give the selling say 250, 500, 1000 dollars and it's entering into a contract.

kinda a good faith gesture, and show that you're serious about the property... and if it falls through, he gets to keep the money for his trouble and/or for any paperwork he may have had to work on.

am I close?

ski_king

10-21-2006, 06:21 PM

You have it correct as I understand and experienced it.

dapicatti

10-21-2006, 07:10 PM

You are correct. Basic concept is- buyer gives earnest money which must be placed in an escrow account, if buyer backs out of the deal seller gets to keep the money.

Of course there are many variations of what "backing out" looks like and equal variations of who gets to keep the money. Talk to a good real estate attorney in your area. They will set you straight.

Workin' 4 Toys

10-23-2006, 08:35 AM

15 acres Milk.....Are you going for the "EXTRA-EXTRA-LARGE" storage shed.....:rolleyes:

Upper Michigan Prostar190

10-23-2006, 08:50 AM

on the water milk?

milkmania

10-23-2006, 09:23 AM

15 acres Milk.....Are you going for the "EXTRA-EXTRA-LARGE" storage shed.....:rolleyes:

that project turned into building a house for myself

on the water milk?
no, but there's a creek;)

and a **** load of deer & turkey!
(documented with nature cam)