Is the EMD typically given along with a LOI or at the time of executing the contract?

In Buying Property - Asked by Todd H. - Apr 22, 2016
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Answer(s)

Mike Y.
Broker/Agent
Dawsonville, GA

Generally, it is given at the time of executing the contract or a small number of days after. I am not sure what state you are in or the local real estate license law however, In Georgia and it all depends on the contract, how it reads, and what is customary in the market. However, it can be leveraged in negotiations with the Seller when presenting the LOI.
Hope this helps, Todd!
Mike Young
myoung@nortoncommercial.com

Apr 22, 2016
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Francis L.
Broker/Agent
Santa Clarita, CA

The LOI is a non-binding agreement and there would be no reason to give the EMD at that time, unless stated or agreed upon in the LOI. It's usually delivered or wired within the timeline stated in the executed Purchase and Sale Agreement.

Apr 25, 2016
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Chris R.
Broker/Agent
Denton, TX

NO EM is involved in an LOI. Never. An LOI is just a tool to identify the terms of general agreement to which a contract is then prepared and when executed by all would be delivered to the title company with the EM.

Jun 1, 2016
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