In NY neither seller or buyer have any legal obligation toward each other until a contract is signed by both buyer along with a 10% of sale price deposit and counter signed by seller and "delivered" to buyer's attorney. The deposit his held in an escrow account administered by seller's attorney.
While often confused a deposit is not always a down payment. A down payment is the amount not being financed.
Lic. Assoc. RE Broker
The Corco0ran Group
It not a good idea or a suggestion...it's a REQUIREMENT!
How much is based on prevailing practice.
Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
Earnest money has different meanings and uses in different areas. In many areas, earnest money is used prior to contract signing to lock up a property. Often this is called a Binder. In NY state Binders are non-binding. In NY State, earnest money is only considered binding when it accompanies a fully executed contract and is used as consideration towards the purchase of the property.
If an agent in NY State tells you that you need to put down a binder or earnest money prior to contract signing, you would do well to walk away from that agent. Get yourself a knowledgeable and respected buyer's agent as well as an attorney well versed in the transfer of the type of property you are purchasing (i.e. Co-op Condo, Townhome,etc...).
I hope this is helpful,
Please feel free to contact me if you have any further questions.
WEICHERT, REALTORS - House & Home
(718) 432-5000 (Office)
(917) 974-2600 (Cell)
609 Kappock Street Suite 1A Bronx, NY 10463
Michael Saunders & Company
In some parts of the country, but not the New York City metropolitan area, you make an offer and sign a contract simultaneously. The seller accepts the offer by signing the contract. That is the reason you see references to earnest money being paid at the same time as you make the offer. In the New York City metropolitan area, first you negoyiate the terms of the transaction, then sign the contract. The earnest money, or downpayment, is paid when you sign the contract.
Licensed Real Estate Associate Broker
450 7th Avenue Suite 1501
New York, NY 10123
These things vary by location. In NYC, we do not have "earnest money." In NYC, when a seller accepts a buyer's offer, the buyer's attorney conducts their due diligence. After the attorney has completed this, the buyer signs the contract and gives a 10% deposit. The contract and the deposit go to the seller's attorney. No money passes hands until a signed contract.
Halstead Property, LLC
It is my recommendation to customers that if they want to be considered a serious buyer that all offers should include the following:
1. a deposit amount with the purchase offer
2. a letter of pre-approval for funds or a proof of funds letter
3. an aggressive closing date
4. minimal contingencies-nothing kills a good deal faster than conditions.
With this approach and making a reasonable offer, you should be in the hunt....
Hope this is helpful.
Earnest money deposits are common - not sure if they're 'required'. However, if you don't submit an earnest money deposit with your offer, the seller most likely will not accept it. So sellers do instruct their listing agents to ask for one (I guess this could be considered 'required'). From the seller's point of view, if the buyer submits an earnest money deposit, it shows the seller the buyer is serious.