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Real Estate Tips
Making An Offer >Keeping Your Earnest Money Safe

When you make an offer on a house, it is accompanied by an earnest money check. Earnest money is intended to demonstrate that you are "in earnest" about purchasing the property. The earnest money check is made out to the listing company. What happens to this check?

The party holding the check acts as an escrow agent until you go into closing. At that time you will receive credit for the amount of your check against the down payment and closing costs. Real estate brokers are required by law to keep escrow funds in a special account. These funds cannot be used to pay any other expenses associated with the sale. If you don't complete the transaction, the purchase contract determines the disposition of your earnest money funds. Be sure to review this part of your contract with the real estate agent.

If you are in default on your agreement, the funds may go to the sellers, so be sure that you understand the deadlines in order to avoid breach of contract and forfeiture of your deposit. If you have any questions, be sure to ask your real estate agent for advice.

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Real Estate Trivia
Q 
What island in the St. Lawrence River was given away on a television game show in 1964?

A 
Price is Right Island was given away by Bill Cullen on "The Price is Right."
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The Paul Paterakis Power Team, REALTORŪ, real estate agent and broker for Lake Zurich, Grayslake and Long Grove, Illinois home listings, property and land for sale

The Paul Paterakis Power Team
The Paul Paterakis Power Team - RE/MAX Showcase

25884 East Route 83
Long Grove, IL 60060
Direct: 847-388-7551
E-Fax: 847-596-6867
Info@PowerTeamHomes.com


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© Homes Media Solutions™, a division of Dominion Enterprises and/or its clients.
All rights reserved. All information deemed reliable but not guaranteed.