Why is an earnest money deposit required to have a binding contract? Is there any other way?

In Buying Property - Asked by Dwight B. - Jan 29, 2010
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Joel O.
Broker/Agent
Canton, GA

Depending on the wording of the contract it is not. The "devil" is always in the details of the wording.
Reversing your question why on earth would a seller want do lock up a property to you getting nothing in return?? For buyers that don't want to put up little to no money or developers that want to string out and lock up a property we put a "right to continued marketing clause in the contract". This way if they want to "shop" the contract,do testing on their own dime etc. we are not locked in.
A seller getting locked in with no "non-refundable hard earnest money" upfront is being taken advantage of. The buyer can't have the cake and eat it to. :)
No legal advice.

Jan 30, 2010
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