One of them is the amount of earnest money the buyer will deposit with an escrow company while the sale is being processed. And, like with any term that can be negotiated, the more you know about earnest money, the better. Wikipedia says the definition of earnest money i. And, if the buyer does walk away without a valid reason, the seller may accept the earnest money as damages. There are many valid reasons a buyer may cancel a Purchase Contract, though.

Time is of the essence in the performance of the obligations described in the Arizona Purchase Contract, but deciding exactly when home buyers need to deposit their earnest money usually depends on whether they are buying a short sale. Either way, the deposit should be made with available funds e. However, in a traditional sale, a home buyer should attempt to deposit the earnest money with the agreed-upon escrow company within 24 hours of having an accepted contract with a seller.

In some states, like New York, the earnest money may be held in escrow by the listing broker.

On the contrary, in Arizona, the earnest money is usually held by a neutral escrow company. If you enjoyed reading this article, subscribe here to receive the next one we post by email! I was given a pre approval letter for a home loan then when we found a home put in a bid it was accepted i gave them my earnest money check and two days latter the mortgage company say they cant give me a loan because of low scores is the earnest money lost.

Are you familiar with mobile home closings?

My realtor wants me to give her a check for the full purchase price to hold in escrow until after the seller performs needed repairs before closing. I had given her a check for earnest money, but she says the seller needs protection before he makes the repairs.

In what case would earnest money be collected by a landlord from a tenant who was renting a bedroom in which the landlord was living? I had no intention of buying the condo. After moving out, I have received none of the earnest money back.

Have you checked if the terms of your lease agreement mention if the earnest money was refundable? The Arizona Residential Lease Agreement, for example, has a specific section where the landlord and tenant must agree whether each deposit security deposit, cleaning deposit, etc. SO if I were to accept earnest money because the buyer canceled on day of closing am I accepting that she canceled?

Can I go after her for failure to perform? If I take the earnest money can I still go after her for failure to perform? I need the earnest money to hire an attorney.

Refund of earnest money | Legal Advice

Mstystorm, you should speak with a real estate attorney before you accept the earnest money. Does the seller of a home have the right to keep the buyers earnest money, when the buyer is obtaining a VA loan? My buyer has yet to close or bring loan documents and we were supposed to close last week. My question is, 5-days from what?

Can you guarantee that my earnest money will be returned? - The Phoenix Real Estate Guy

All About Earnest Money Deposits in Arizona Posted on April 10, by Doug Hill. Can Phoenix Home Sellers Accept Backup Offers? About Doug Hill Doug Hill is an Associate Broker with Coldwell Banker Residential Brokerage, and founded The Hill Group with his wife, Kirsten in He is an active member of the Southeast Valley Regional Association of Realtors on their Professional Standards Board, and he and his wife have had the 1 team for Coldwell Banker in Arizona for multiple years in a row.

He loves to read, travel, and spend time with his family and friends. Posted in Arizona Real Estate News , For Buyers , For Sellers and tagged bank owned , contracts , escrow , home buying tips , home selling tips , new construction , short sale.

Often over looked up front but always important, thanks for the in-depth knowledge. OUR LISTINGS The Hill Group's Listings HOMES FOR SALE BY CITY Chandler Fountain Hills Gilbert Mesa Paradise Valley Phoenix Scottsdale Tempe. Phoenix Housing Market Update.