When the transaction is settled then the deposit is applied to the buyer's portion of the remaining costs. These funds may be held directly by the seller's attorney, the real estate broker (as in the State of New York) or by a settlement or title company (as in states like California, Florida, and Texas). If the seller accepts the offer, the earnest money is held in trust or escrow. If the deposit is being used as part of the borrowers minimum contribution.
#EARNEST MONEY VERIFICATION#
The amount varies enormously, depending upon local custom and the state of the local market at the time of contract negotiations. How is an earnest money deposit verified Verification of Source of Funds. According to Black's Law Dictionary (sixth ed.), Et cepit de praedicto Henrico tres denarios de Argento Dei prae manibus ("And he took it from the aforesaid Henry silver three pence handed over God").Ī potential buyer of property of high value such as residential real estate generally signs a contract and pays a sum acceptable to the seller by way of earnest money. It was either money or a valuable coin or token given to bind a bargain, notably for the purchase or hiring of a servant. In the Middle Ages, the earnest payment was called variously an earnest penny, Arles penny, or God's silver (in Latin Argentum Dei). For the British Indian Army general, see Ernest Money.Īn earnest payment or earnest money is a specific form of security deposit made in some major transactions such as real estate dealings or required by some official procurement processes to demonstrate that the applicant is serious and willing to demonstrate an earnest of good faith about wanting to complete the transaction.
0 kommentar(er)
