Quick Bites:
- Earnest Money from a Buyer shows they are serious about purchasing.
- Contract should state if refundable and when it’s no longer refundable.
- EM should be held by a professional 3rd party.
- “Go hard” Is a term referring to when EM is no longer refundable.
- Poorly negotiated EM provisions can lead to litigation.
- The holder of EM is also referred to as an “escrow agent”
- In the event of a dispute, the escrow agent should have the power to pay the disputed amount into court and walk away from the transaction.