real estate


Question by  DStone (817)

What is considered good faith money in real estate?

I am new to buying a home and would like to understand what my real estate agent means by good faith money?


Answer by  albsab (68)

The seller needs to know that you are serious and have the money to close the deal. When you submit an offer, this deposit, also known as "earnest money", will be held in escrow pending settlement and will be part of your down payment. The amount deposited will vary and your broker can advise you on an appropriate amount.


Answer by  Carol37 (569)

Good faith money is your deposit on the property given at the time you make an offer. If accepted it goes toward your down payment; if not it is returned.


Answer by  krpmuffitt (223)

Good faith money, also called earnest money, is money you put down when you make an offer (or shortly after acceptance). If the transaction is completed you are credited with the earnest money. If you change your mind about the purchase without having a legal reason under the contract, the seller is entitled to the good faith money.


Answer by  Jodie (551)

It is money that you give to the Realtor when you write a contract. It is kept in the trust account at the real estate office and will be brough to closing as a credit for you. However, if you back out of the contract for no reason, you forfeit.

You have 50 words left!