Real Estate Deposits

usually....

in louisiana, there are two types of deposits; one is the "normal" deposit that is either held by the seller or in escrow by the realtor; the other is called an "earnest money deposit" which is put up by the purchaser. if the deal falls through at the fault of the seller, then the seller has to match the amount of the earnest money deposit as a sort of stipulated damages for backing out of the deal. the purchaser also gets his original earnest money deposit back. If the purchaser puts up the earnest money depsoit and does'nt close, then he forfeits his emd. earnest money deposits are not very common. 99% of all real estate deals involve the standard deposit. if the deposit is an earnest money one, then it must state it as such in the purchase agreement. emd's can be good if you doubt the ability of the purchaser to follow through and also to make a clean break between the parties for a set amount without having to worry about litigating what a party's damages were becasue the other party failed to close.

I had a contract on my house. Buyer put down 1K. Appraisal came back at the agreed price. The maintenance inspection had just a few minor issues. Buyer decided two weeks after signing the purchase agreement that they didn't want the house. They had great financing. The girl told my Realtor that they just decided the time was not right for them to buy.I missed another opportunity to sell during the two weeks. What sucks is the buyer was refunded the 1K deposit. They really should change the law that makes it where it is not as easy to back out of a contract.

It was actually 10 days from the notification period but is was really two weeks from the actual day the contracts were signed by both parties.

Since we're on the subject of realty in La it seems I've come to the right place to ask this. I'm about to take my Brokers test and wondering how much of the test is geared towards broker questions vs basically taking the national and state license test all over again. I'm debating taking a prep course but all it does is cover these 2 portions. I'm assuming there's not a lot prep for the broker section.
Sorry for changing subject.

someone else probably said it....but just make sure that the agreement states that the agreement to purchase is contingent upon the house passing inspection and appraisal for the price agreed upon....

quote:

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if the contract is properly filled out and contingent on appraisal

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There is no 'proper' way to fill out a contract for all situations. Whatever the two parties agree to is what they agree to. Period. If they agree to make it not contingent on an appraisal, then that IS the proper way to fill it out.