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  • Questions that Salt Lake Home Buyers Always Ask (#4)

    Posted on October 16th, 2010 admin No comments

    Why should we make a large earnest money deposit?  Isn’t that an unnecessary risk?

    A very large earnest money deposit is risky, but just as the earnest money binds you to the contract it also binds the seller.
    In most cases if a buyer defaults on the real estate purchase contract then the seller can retain the earnest money deposit as compensation for time and trouble.  But this rule also works in reverse.
    If the seller defaults on the contract (fails to complete the sale) then you, the buyer, are entitled to a refund of your earnest money AND an equal amount from the seller for your time and trouble.

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