Earnest Money Deposit: A serious money deposit is a deposit that shows the buyer`s good faith and obligation to continue buying the property. In return for the buyer who makes a serious deposit of money, the seller removes the property from the market. At the conclusion of the purchase, the deposit of the money is credited with the purchase price. If the contract is terminated under the terms of the contract, the deposit of money is normally refunded to the buyer. A real estate purchase agreement does not transfer the title of a house, building or land. Instead, it provides a framework for each party`s rights and duties before the title can be returned. Existing credit check. If an existing loan is not authorized for underwriting, the seller must provide the purchaser with copies of the credit documents (including the deed of borrowing, fiduciary or mortgage deed, amendments) within calendar days of acceptance of this contract. This contract is subject to the buyer`s review and approval of the provisions of this loan file. The buyer accepts the provisions of these loan documents if the seller does not receive a written objection from the buyer within the calendar days following receipt of these documents. If the lender`s agreement for a transfer of the property is necessary, this contract is conditional on the purchaser obtaining such consent without altering the terms of such a loan, unless the buyer can agree. If the lender`s agreement is not obtained on or before the date , the contract is terminated on that date.

The seller is not exempt from liability for this existing loan If the seller is to be released and the release authorization is not obtained, the seller may nevertheless choose, at the seller`s sole discretion, to enter into or terminate this contract. You should use this agreement if a) you are a potential buyer or seller of real estate, (b) define the legal rights of each party to the sale and (c) define the respective obligations of each party before the transfer of ownership. As a buyer, I would try to avoid this method as much as possible. It really doesn`t give you any method to defend yourself against an unethical or misguided seller. If you have to leave with this option, I advise you to get the seller to sign a land contract that is in a descriptible form. It means that a witness and a notary must sign it. In this way, you may be of interest to the property and anyone, including a bank that searches the title, now be of your interest and be obliged to manage it.