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.
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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