Home Buying in Pennsylvania>Question Details

Alex R, Home Buyer in Pennsylvania

Can I make an offer on a property without an earnest money deposit?

Asked by Alex R, Pennsylvania Tue Jan 26, 2010

Instead, I'll put down an earnest money deposit within 2 days of the seller signing the purchase agreement. Is this common practice? Does it allow the contract to still be legally binding?

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Answers

6
Legally yes, but the seller might not agree to sign before you hand over the earnest money.
1 vote Thank Flag Link Thu Jan 28, 2010
Alex R

Yes you can although many realtors will object. You and a seller can agree to anything that is not illegal. The contract, Agreement of Sale, requires consideration which can be paid at any time agreeable to both parties. The most common method is earnest money with the offer a deposit with acceptance and the balance at closing but both parties can agree to something different.

Fran and Mark Redding
Prudential Fox & Roach, Realtors
1010 stony Hill Road
Yardley, PA 19067
215-321-3307 Direct
215-504-7500 Office
mreddingrealtor@aol.com
http://www.FranandMark.com
Web Reference: http://www.franandmark.com
1 vote Thank Flag Link Thu Jan 28, 2010
We do this routinely in AZ. In fact one Broker I worked for refused to allow us to take EM checks, instead stipulating that the client will deliver to title company within "X" days. Because we have so many out of area buyers, it is not always possible for them to be in town when contract in executed. We have them wire transfer directly to title co.
0 votes Thank Flag Link Sun Mar 7, 2010
Yes and No. If you make an offer you can put the amount of the earnest money you will provide if the contract is accepted. I'd be happy to chat more if you have any other questions.
Best wishes,
JuliePaddock
Century 21 Sherlock Homes
570-746-0383

My web site has lot's of information also : http://www.century21paonline.com
0 votes Thank Flag Link Mon Feb 1, 2010
Alex, I am sure some realtors will explain that legally $1 is enough to be considered earnest money. Then they will explain that a lot of sellers will not take that as a serious offer.

Then there was an investor who said he offered $10 for earnest money and did ok.

Make it a small amount of earnest money and you will not care if you lose it.
0 votes Thank Flag Link Tue Jan 26, 2010
In Minnesota we have 3 days to deliver the earnest money after the purchase agreement is signed. Every state varies.
Web Reference: http://www.lennyfrolov.com
0 votes Thank Flag Link Tue Jan 26, 2010
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