First Time Home Buyer Questions #2: Will I Lose My Deposit Money?
First Time Home Buyer Questions: Part 2
Will I lose my deposit money?
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One good thing that came out of the real estate market crash is the safeguards that were put into place to protect buyers and sellers and their money.
In a typical residential real estate transaction a buyer will put down 1-3% of the purchase price as a deposit called a "good faith deposit". The 3% represents the amount of money a buyer can lose if they default on the contract. The 3% deposit monies sit in an escrow account until the close of escrow or the transaction is complete.
In what instances would I be in default? Built into the contract are contingencies. The contingencies allow for the buyer to inspect the property, seller disclosures,...