Minimum amount of earnest money

Author: kayf Date of post: 28.05.2017

View all Local Real Estate forums. General Real Estate Investing 14 Replies.

Home Buying: What is the lowest amount of earnest money a buyer should offer on a bank-owned property? - Trulia Voices

If anybody has access to a link or list of the minimum earnest money depsosit required by each state please post it here. If not lets just get a list going of state by state requirements. What does your state require? As far as I know, that is totally up to the seller to accept or deny whatever you offer. It can be a ham sandwich as long as the seller agrees and it's on the contract. Although I'm not sure how they would put that in an Escrow account. Cash deposit that shows buyer's intention to carry out the terms of the contract.

An earnest deposit can be taken in any form.

minimum amount of earnest money

Cash, check, personal property, a boat, or a diamond ring would be examples of possible earnest deposits that might be used. The key issue here is notification to the seller of the form of the deposit.

I don't think that there is any state minimum.

It is a simple matter of contract law. For a contract to be legal there must be "consideration" such as cash or an equivalent. There may be amounts that are customary, but that doesn't make it a requirement. Learning something new everyday.

How Much Earnest Money Is Acceptable?

Every offer i made to a bank required a minimum of Was told that was state policy. I guess they meant that was the banks policy in this state. The amount tends to change per market at the county-level.

When in fact, there is no such stipulation in the law. BTW, all bets are off when dealing with REOs. They have their own policy regarding earnest money. Now, speaking in REO terms, that is a bank stipulation perhaps and my advice for making offers on REO's is to ALWAYS offer large EMD 's, quick closings, and only one or two contingencies.

Will Barnard, Barnard Enterprises, Inc. I called the agent to find out if they left off a zero, they didnt Like everyone has mentioned, it is an urban myth that there are laws which state earnest money is required for a real estate transaction. However, there are some states that have laws on how the earnest money if there is any should be handled or held in escrow.

I used an unsigned letter of intent as earnest on one Indiana deal. Since it was e-mailed I figure I used a couple kilowatts of power to make it happen so probably about.

Earnest Money | Legal FAQs for REALTORS® | For Texas REALTORS® | Texas Association of REALTORS

Basically there's no minimum in Indiana and it's not required at all. Sometimes they make me come up with it like Matt said, their way or the highway and sometimes we take care of it at closing. I'm a repeat customer with some of them so by now they don't care as much. I just bought 2 shortsales with no earnest money - we were closing in 14 days so e.

In Texas at least, there is no requirement of ANY earnest money for a contract to valid and enforceable. So now I guess its 2 or 3 over the last 6 years. So now that the qriginal question has been answered by several here, everyone interested should pay special notice to Ryan's last post and differentiate between private sellers that are non-listed properties, listed properties and REO properties.

How to Protect Your Earnest Money Deposit

He has stated that he has been able to get away with no EMD 's on most of his non listed private party purchases, and small amounts on the listed ones, but on REO 's, he often places larger deposits to get better results. EMD's are not universal with all selling parties. Each different aspect calls for a different strategy by you, the buyer. Having to chase the seller down for it back in case for whatever reason the deal doesn't go through?

I've yet to do a deal but I'm considering offering a deposit that indicates some seriousness on my part. Already have an account? How a Newbie Can Start Building Wealth Through Real Estate. Use your real name. Make it at least 8 characters. Create a new account instead. An email has been sent with a confirmation link. That link will get you back here to reply. We look forward to your post. Log In Email Address: Share on Facebook Share on Twitter Share on LinkedIn 1 of 1 pages.

minimum amount of earnest money

Jon Frame Investor from Lehigh Valley, Pennsylvania replied about 8 years ago. I have never heard of a State Minimum, I live in Pennsylvania and I know there isn't any here.

D I just copied this from my Online Real Estate License Course I am currently taking: Richard Warren Real Estate Investor from Las Vegas, Nevada replied about 8 years ago.

Matthew Gil Real Estate Investor replied about 8 years ago. Will Barnard Developer from Santa Clarita, California replied about 8 years ago Moderator. Anson Young from Denver, Colorado replied about 8 years ago. As several of us stated, there are NO minimums in any state.

Vendor from Tampa, FL replied about 8 years ago. Ryan Webber Wholesaler from Amarillo, Texas replied about 8 years ago. Dory Peters Real Estate Investor from dc, Washington D. Wow, Ryan, you're cheap! And so am I. Benjamin Cowles from Cape Coral, FL replied over 1 year ago.

minimum amount of earnest money

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How Does Earnest Money Work in a Real Estate Contract

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