ERNEST MONEY REAL ESTATE DEPOSITS

In this podcast episode, Bob Richards answers the following questions regarding Ernest Money deposits for real estate purchases.

1. Is this normal on most real estate purchase agreements?

2. What is the purpose of an Ernest Money deposit?

3. Is there a specific amount of Ernest Money deposit for all real estate contracts?

4. What are the pros and cons of a low amount vs a higher amount?

5. Where does the money go?

6. Could it be lost by the buyer?

7. How could the seller keep it?

8. Who determines where the Ernest Money deposit goes in case of a default?