Minimum California Deposit?
I read in a report earlier today that some states require a specific minimum amount of earnest money for any real estate deal. Can anyone confirm the validity of this (California specifically, but I'm curious all across the board)
I know there is no minimum deposits in California and I am not aware of anything like that in other states.
In Arizona, there has to be $10.00 exchanged for a real estate contract to be enforced, or at least for the courts to consider enforcing the contract if a dispute arises. If neither party has issue, the sale can proceed without the $10.
Jeff[ Edited by jeff12002 on Date 10/13/2004 ]
Legally, you don't need to make any deposit with your purchase offer. All that is required is the buyer and seller sign the sales contract. However, few home sellers will agree to sell unless the buyer makes a modest good faith deposit.
Escrow agreements are most often used for an "earnest money" deposit, also known as a "binder". The Buyer makes out a check to the Seller but gives the check to a third party named in the Escrow Agreement.
Special Escrow agreement are not required in California and other states that mandate the use of Escrow Agents or Title Company officers to handle closings.
You want the "earnest money deposit" to be large enough to show the seller you are serious.
When dealing with government owned properties many do require earnest money deposits.
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I don't know about that last comment. I sealead a million dollar deal with $75. I just let the sellers know that they will get the rest paid in FULL upon closing
There is no minimum in California, but some lenders require $1,000...even with 100%LTV loan (like that makes any sense!) :-o
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