Jonathan Snow

Is Your Earnest Money Deposit Refundable Upon Cancellation?

Jon Snow — Fri, 27 Jul 2012 19:24:00 GMT

First, read your contract. Laws vary from state to state. In California, standard C.A.R. purchase contracts allow for the return of the earnest money deposit to the buyer within a specified time period, by default 17 days, should the buyer elect to cancel the transaction. If, at that point, the seller refused to return the deposit without cause, the seller could end up paying a $1,000 civil penalty to the buyer.

Upon cancellation, the sellers and buyers are asked to sign mutual release instructions. If an agreement cannot be reached, the party holding the earnest money deposit will continue to hold it until an agreement is reached. If no agreement has been reached after a few years, escrow companies then send the parties a certified letter asking for mutual instructions. The letter says if nobody responds within a certain time period, then escrow will return the money to the buyer. If the seller contests the action then, after 3 years, escrow will send the money to the state of California, presumably to help balance our budget deficit.

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Be Careful to Whom You Give Your Earnest Money Deposit

Jon Snow — Fri, 27 Jul 2012 19:08:00 GMT

A reader from New Brunswick, Canada, Sylvie Schriver, claims she lost her $2,500 earnest money deposit by handing it over to an individual who professed to be a real estate broker. She says the broker stole a brokerage's logo and business supplies to make it appear that he was legitimate; however, he vanished when Sylvie called to ask questions about her mortgage. When she reported the crook to the police, she then discovered that others had filed complaints. Sadly, at that point, Sylvie's money was gone.

Never give an earnest money deposit to the seller.
Make the deposit payable to a reputable third party such as a well known real estate brokerage, legal firm, escrow company or title company.
Verify that the third party will deposit the funds into a separately maintained trust account.
Obtain a receipt.
It is not advisable to authorize a release of your earnest money (or a pass-through) until your transaction closes.

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Earnest Money Deposits, How Much is enough?

Jon Snow — Fri, 27 Jul 2012 17:59:00 GMT

It's a good faith deposit but not to be confused with a down payment. When buyers execute a purchase contract , the contract specifies how much money the buyer is initially putting up to secure the contract, to show "good faith," and how much money all together will be deposited as a down payment. The balance is generally financed as a mortgage or a combination of mortgages. An earnest money deposit says to the seller: "Yes, I am serious enough about buying your house that I'm willing to put my money where my mouth is."

So, How Much is Enough?

Because there is no set amount, it varies from market to market and across the country. Where I work in California, deposits are generally 1 to 3 percent of the sales price. Buyers here do not often put down more than 3% since most sign a liquidated damages clause that limits the seller to 3% of the purchase price as damages in the event of a default. But it's not unusual for a buyer purchasing a $300,000 home to put down $1,000, especially if the buyer is obtaining 100% financing. In those scenarios, the deposit is most often refunded to the buyer and subsequently used as a credit toward closing costs because the financing makes up the entire purchase price.

If it's a seller's market, with many buyers fighting over limited inventory, it makes logical sense for the buyer to put down a much larger earnest money deposit to entice the seller to accept the offer. In buyer's markets, a larger earnest money deposit might entice a seller to accept a much lower purchase price. So you see, it all depends.

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Price Reduced on 11410 Ianthas Way in Hopyard Farm

Jon Snow — Wed, 15 Feb 2012 03:48:00 GMT

Hopyard Farm, King George County - Announcing a price reduction on 11410 Ianthas Way, a 2 bath, 4 bdrm 2 story "Colonial". Now MLS® $270,025 - REDUCED w/$5K in CLOSING.

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HUGE PRICE REDUCTION Normal sale ONLY $264,900 on 6194 McCarthy Drive in Hopyard Farm

Jon Snow — Tue, 14 Feb 2012 03:30:00 GMT

Hopyard Farm, King George County - Announcing a price reduction on 6194 McCarthy Drive, a 2,290 sq. ft., 2 bath, 4 bdrm colonial. Now MLS® $264,900 - NORMAL SALE REDUCED.

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11700 Hopyard Drive in Hopyard Farm is Sold!

Jon Snow — Fri, 10 Feb 2012 16:32:00 GMT

Hopyard Farm, King George County - The colonial at 11700 Hopyard Drive has been sold.

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Open House in Hopyard Farm on Sunday

Jon Snow — Fri, 10 Feb 2012 16:14:00 GMT

Hopyard Farm, King George County - We invite everyone to visit our open house at 6194 McCarthy Drive on February 12 from 2:00 PM to 4:00 PM.

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Price Reduced on 6194 McCarthy Drive in Hopyard Farm

Jon Snow — Sun, 05 Feb 2012 01:56:00 GMT

Hopyard Farm, King George County - Announcing a price reduction on 6194 McCarthy Drive, a 2,290 sq. ft., 2 bath, 4 bdrm colonial. Now MLS® $274,000 - NORMAL SALE REDUCED.

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Open House in Hopyard Farm on Saturday

Jon Snow — Thu, 19 Jan 2012 22:33:00 GMT

Hopyard Farm, King George County - We invite everyone to visit our open house at 6194 McCarthy Drive on January 21 from 11:00 AM to 3:00 PM.

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New Home with Sunroom For Sale in Hopyard Farm

Jon Snow — Thu, 12 Jan 2012 02:12:00 GMT

New Home

• 2,462 sq. ft., 2 bath, 4 bdrm single story - MLS® $279,900 - $10,000 towards closing

Hopyard Farm, King George County - Welcome to this 4 Bedroom 2.5 Bath Colonial in Hopyard Farm. This home is located on a premium lot that backs to a preservation area on the Rappahannock River. Enjoy sitting in your Suroom or go for a stroll on the lighted sidewalks. Community amenities include decorated clubhouse, state of the art fitness center, billiards room, theater room, business center and Olympic sized swim pool, tennis courts and more.

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Colonial For Sale in Hopyard Farm

Jon Snow — Thu, 12 Jan 2012 01:37:00 GMT

Views of River

• 2,290 sq. ft., 2 bath, 4 bdrm colonial - MLS® $279,000 - NORMAL SALE

Hopyard Farm, King George County - Welcome to this 4 Bedroom 2.5 Bath Colonial in Hopyard Farm. This home is located on a premium lot that backs to a preservation area on the Rappahannock River. Enjoy sitting on your screened porch or go for a stroll on the lighted sidewalks. Community amenities include decorated clubhouse, state of the art fitness center, billiards room, theater room, business center and Olympic sized swim pool, tennis courts and more.

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WOW!!! Look!!! 6194 McCarthy Drive in Hopyard Farm for sale

Jon Snow — Thu, 12 Jan 2012 01:37:00 GMT

Hopyard Farm, King George County - Announcing a price reduction on 6194 McCarthy Drive, a 2,290 sq. ft., 2 bath, 4 bdrm colonial. Now MLS® $279,000 - NORMAL SALE.

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15437 Tall Pines Lane in Bowling Green Park is Sold!

Jon Snow — Wed, 11 Jan 2012 23:58:00 GMT

Bowling Green Park, Woodford - The colonial at 15437 Tall Pines Lane has been sold.

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Price Reduced on 11410 Ianthas Way in Hopyard Farm

Jon Snow — Wed, 11 Jan 2012 23:55:00 GMT

Hopyard Farm, King George County - Announcing a price reduction on 11410 Ianthas Way, a 2 bath, 4 bdrm 2 story "Colonial". Now MLS® $277,900 - REDUCED w/$10K in CLOSING.

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Price Reduced on 11771 Champ Way in Hopyard Farm

Jon Snow — Tue, 03 Jan 2012 04:04:00 GMT

Hopyard Farm, King George County - Announcing a price reduction on 11771 Champ Way, a 3,484 sq. ft., 2 bath, 4 bdrm colonial "Brick Front". Now $255,000 - Reduced.

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