Home Buying in 14901>Question Details

Ed, Both Buyer and Seller in Elmira, NY

is there ernest money in new york state its either YES or NO?

Asked by Ed, Elmira, NY Fri Jan 1, 2010

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In New York it is not generally referred to as earnest money, but the deposit is required by the contract. What is unusual here is that the amount that is normally put into the contract is 10%. Now with the over abundance of low down payment purchases, some sellers attorney's will negotiate for less. The down payment money, as it states in the contract, is held in escrow by the seller's attorney in a non-interest bearing account. Also, on the higher priced homes there are times when people can also negotiate a lower down payment on contract simply because no one wants to liquidate over $100,000 to put down their 10%, and are also not willing to jeapordize that much money if something happens to the deal.
0 votes Thank Flag Link Fri Jan 1, 2010
Not mandatory, but you can if you'd like--what is your Realtor advising--if you found "the property" get yourself into contract asap, an executed contract (with your deposit of course) is what makes a deal stick.

0 votes Thank Flag Link Fri Jan 1, 2010
I'm obviously not from NY state but I'm pretty sure the purpose of earnest money is similar everywhere: to show a seller that you are serious about your offer. Its not mandatory in NJ but it is still necessary. No offer would be taken seriously without it.
0 votes Thank Flag Link Fri Jan 1, 2010
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