Lawrenceburg KY Real Estate Questions about Earnest Money Deposits

Lawrenceburg KY Real Estate Questions about Earnest Money Deposits

What is earnest money?

Earnest money is monies given to the real estate broker when an offer is made on a piece of property. Earnest money is often called a good faith deposit, because the seller will betaking their home off the market in good faith that the buyer will be purchasing the home.

How large does the earnest money deposit have to be when purchasing real estate in Lawrenceburg, KY?

There is not a rule or set amount of the earnest money deposit unless the seller has declared one. Obviously, the larger the earnest money deposit, the more serious the buyer will appear to the seller.

Does a Kentucky real estate broker hold the check until closing or is it deposited?

The real estate broker is required by law to deposit the earnest money check into their escrow account upon acceptance of the contract. If the seller does not accept the offer, then the earnest money is returned to the buyer.

Can the buyer lose the earnest money if they do not close on the home purchase?

If there are conditions in the contract that are not met and the conditions state that the buyer will receive the earnest money back, then the buyer will be able to receive the earnest money back. However, if the buyer defaults, the seller may accept the earnest money as liquated damages or pursue legal action for breach of contract.

This information is based on Kentucky Real Estate laws and it may be different in your state. Please consult with a licensed Realtor in your area for information pertaining to your state.

Find a home for sale or learn more about buying or selling a home.

Learn more about Exit Realty in Kentucky and Tennessee.

Lawrenceburg KY Real Estate - Cindy Crutcher, Broker As a community minded and dynamic residential Realtor, my intention and commitment is to be an invaluable resource for buyers and sellers in the Lawrenceburg, KY real estate market. I am passionate about working and living in Lawrenceburg, KY. I am results driven and work hard to provide top notch service. Call me at 502-680-9822 with any questions or for more information. Exit Realty Crutcher.