Johnson City, Erwin TN and Asheville NC real estate and homes for sale in Tennessee - Judy Taub, REALTOR® REALTOR® Logo - NUMBER1EXPERT™ NUMBER1EXPERT™ Logo
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Real Estate Tips
Making An Offer >Keeping Your Earnest Money Safe

When you make an offer on a house, it is accompanied by an earnest money check. Earnest money is intended to demonstrate that you are "in earnest" about purchasing the property. The earnest money check is made out to the listing company. What happens to this check?

The party holding the check acts as an escrow agent until you go into closing. At that time you will receive credit for the amount of your check against the down payment and closing costs. Real estate brokers are required by law to keep escrow funds in a special account. These funds cannot be used to pay any other expenses associated with the sale. If you don't complete the transaction, the purchase contract determines the disposition of your earnest money funds. Be sure to review this part of your contract with the real estate agent.

If you are in default on your agreement, the funds may go to the sellers, so be sure that you understand the deadlines in order to avoid breach of contract and forfeiture of your deposit. If you have any questions, be sure to ask your real estate agent for advice.

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Real Estate Trivia
Q 
During what great land boom (1919) did investors pay up to $25,000 for lots that had not yet been dredged up from the ocean?
A 
The Florida Land Boom--Carl Fisher founded Miami Beach that year and brought hundreds of investors to the state.
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Judy Taub, REALTOR®, real estate agents and broker for Johnson City, Erwin TN and Asheville NC Tennessee home listings, property and land for sale - NUMBER1EXPERT(tm)

The Judy Taub Team
Preferred Realty
206 2nd Street
Erwin, TN 37650
423-743-1900
Fax: (423)743-1909
judytaub@NUMBER1EXPERT.com


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