Earnest Money

When a buyer makes an offer to purchase a property, an earnest money check must be included with the purchase contract. This amount is usually $1000, more or less, depending on the price of the property. When the buyer and seller come to an agreement on the terms of the contract, the earnest money check is deposited in the trust account of the company offering the property for sale or the trust account of the title company, to be applied to the buyer’s closing costs.