Once an offer has been made, the seller has three options:
- Accept the offer as written;
- Reject the offer outright;
- Reject the offer and make a counter proposal with different conditions, terms, amounts, etc.
Should the seller make a counter offer, the buyer then has the same three options.
When all parties agree on the terms of a contract, have initialed all changes, and have signed the agreement, the contract is then in full force and binding upon all parties to the agreement subject to any conditions. Possible conditions include loan approval, inspections, sale of another property, and delivery of pertinent documents. Specific time limits are set for each condition in the contract.
Earnest Money Deposit
So you will not be placed in an uncomfortable position when you purchase a home in our area, an understanding of the earnest money deposit is of the utmost importance.
At the time a written offer on the property is initiated, you will generally be required by the seller to include a personal check, cashier’s check or cash. The amount deposited will be kept in the trust account of the real estate company handling the listing and not turned over to the seller.
This money represents your sincerity in the attempt to purchase and is totally refundable if the offer is not accepted or if some condition in the contract is not satisfied, for example, if financing is not approved. The deposit applies in full toward the purchase price at closing if the offer is accepted and all conditions are satisfied.