How to Keep Your Earnest Home Deposit Safe

Are you planning on buying a house? Well, real estate just like any other investments requires a keen consideration. It has its fair share of horror stories.

Stories that scare away new entrants and pros in the industry. They don’t know whether the seller will walk away with their money or not.

While the cases where the property seller keeps your earnest deposit are rare, they can happen. That’s why you need the conveyancing Parramatta to protect yourself during the transaction.

These are some basic tips you can employ to protect your money during this transaction.

Keep-Deposit-Safe

  1. Understand How Earnest Deposit Works

Once you come across a home you like, you make an offer. In doing this, you’ll submit a check alongside your paperwork. This money is known as your escrow deposit.

The value of your deposit will be up for negotiation. Most agents demand anything between 1 and 3 percent of the homes purchasing price.

Don’t forget, and the seller may decide to keep the money if you opt out of the deal without a cause. The deposit helps reassure the seller that you’re serious about making the purchase.

  1. Keep all The Agreements Formal and in Writing

Planning to buy a house may seem so simple, but that’s not always the case. That’s why you need to write down every aspect of your agreement.

Think of your agreement with the seller as a roadmap for this transaction. It should outline any crucial details of the operation. Such include any contingency plan should anything go wrong in the trade.

As you submit your offer, it is your responsibility to negotiate everything in your own best interests. Read through the agreement and contingency plans before signing against your name on the dotted line.

  1. Hold Your End of the Bargain

Once every detail is in writing, it’s in your own best interest to meet any deadlines and expectations as spelled out in the contract.

If you don’t honor these terms, the deal will fall through. This gives the seller a chance to claim your escrow deposit. I’m sure you don’t want to lose any money in the transaction. But how do you do this?

It all depends on how well you’re able to organize yourself. Go through the document after signing off. Identify all the responsibilities you have to meet and the deadlines for doing so. Keep every detail in a timeline, ensure its close so that you can refer to it quite quickly.

Exercise caution when dealing with deadlines. Anything can happen. It is, therefore, safe to give yourself plenty of room and time to cater for any emergency.

  1. Report Any Roadblocks Early

At times, everything doesn’t fall as per the plan. If an issue arises that makes it impossible for you to meet your contingencies, speak up immediately.

In most cases, do this when you’re still within the specified timeframes. It’s possible to renegotiate things and add an addendum that reflects the changes in your circumstances,

 

 

 

Leave a Reply