Earnest money can show buyer’s intent, sometimes serve as seller’s consolation

Realty Check

By Erica Minchella

Erica Crohn Minchella, is the head of the boutique real estate firm of Minchella & Associates, Ltd., handling residential and commercial real estate transactions and litigation such as foreclosure defense, quiet title, and partition actions. erica@ecminchellalaw.com

Posted September 8, 2022 11:31 AM

Earnest money, as we all know, is the consideration given by the buyer to bind the purchase contract.It is often the subject of liquidated damages in the attorney review letter where parties seek to have the earnest money be the sole remedy in the event of default, or to increase the earnest money to satisfy the seller that the funds are sufficient to cover the carrying costs. The amount of earnest money provided by the buyer is often how the seller will judge the strength of an offer, since more money put at risk …

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