EARNEST MONEY

In order to have a valid contract in Colorado, the purchaser as "consideration" to bind and insure the performance of the contract must tender something of value. This consideration is usually in the form of money (cash, personal check, promissory note, etc.) Needless to say, the purchaser will try to give as little money as possible.

It is my position that we should try to get as much "earnest money" as reasonably as possible. We need to "make it hurt" should the buyer either default, misrepresent, or fail to perform per contract. However, if it should it be the case, it is my opinion that the amount of earnest money should be the last consideration as to whether an offer is accepted, counter proposed, or rejected.

RE/MAX Northwest holds earnest money in its non-interest bearing trust account. It can be disbursed only with the expressed written permission of the purchaser and seller. In the event of a dispute, RE/MAX Northwest reserves the right to interplead these monies to the courts pursuant to Item 17 of the Colorado approved contacts. RE/MAX Northwest reserves the right to keep up to 50% (not to exceed the amount of the commission) of any earnest money retained by the seller.

<<<< GO BACK

NEXT >>>>