Contract & Deposit

Contract & Deposit

When purchasing a property, understanding the importance of the contract and deposit is crucial for a smooth transaction. The contract serves as a legally binding agreement detailing the terms of the sale, including the purchase price, contingencies, and closing date. Typically, a deposit—sometimes referred to as “earnest money”—is required to demonstrate your serious intent to secure and buy the property. This deposit is usually a percentage of the purchase price and is held in the seller’s attorney escrow (neutral) account until closing.