When a buyer puts down money to demonstrate their seriousness about buying a home, it is called an earnest money agreement. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.

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Scott Nachatilo

Hi, I’m Scott Nachatilo and I own a property management company in Oklahoma (OKC Home Realty Services, LLC). We help landlords and real estate investors to manage their property in OKC