Tag Archives: escrow

Earnest Money

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When a buyer submits an offer for a property it will almost always include a check for earnest money written out to the escrow agent or title company. The earnest money check shows the seller that the buyer is ‘earnest’ or serious about purchasing the property. The earnest money is applied to the buyers closing costs if the deal is completed. If the deal falls through because the seller backs out of the contract the earnest money will be returned to the buyer. However, the buyer may forfeit the earnest money if the buyer defaults.

If you would like Rick and Sharon to meet with you to discuss buying or selling a home please call 361-433-0520. Or email rick@gcrtx.com or sharon@gcrtx.com. Ask about our Educator Incentive Program. Try our Property Search to find houses with up-to-date information.

Option Fee

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The option fee is money the buyer pays the seller for the option to terminate the contract. Generally, the option fee is $100-$150 and generally, the option period is 10 days from the effective date of the contract. I use the term ‘generally’ because everything is negotiable. The option fee money is paid to the seller and is non-refundable. The home inspection is done during the option period. An amendment is submitted by the buyer to the seller and lists the repairs and treatments that the seller shall complete. The amendment is negotiable. The seller can agree to all repairs and treatments requested. The seller can agree to some or the seller can say they do not want to make any repairs or treatments. Keep in mind, the buyer can back out of the contract for any reason during the option period and their earnest money is refunded.

If you would like Rick and Sharon to meet with you to discuss buying or selling a home please call 361-433-0520. Or email rick@gcrtx.com or sharon@gcrtx.com. Ask about our Educator Incentive Program. Try our Property Search to find houses with up-to-date information.