Seller Accepts Offer and Buyer Provides Binder Deposit

Once the buyer and seller come to terms on the price and any contingencies, both the buyer and the seller sign a binder. The buyer places a deposit in an escrow account to be held until the closing settlement. The binder deposit is also called earnest money or a good faith deposit because it demonstrates to the seller that the buyer is serious about completing the real estate transaction and is monetarily invested in making the transaction work.

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