At Equity Real Estate we know that real estate terms can sometimes be confusing. We are going to share with you some common real estate terms and their meanings to help give you a greater understanding when you are trying to buy or sell a home.
*Deposit: money paid in good faith to assure performance of a contract. Deposits are commonly used with sales contracts and leases. If the person who put up the deposit fails to perform, the deposit is forfeited, unless conditions in the contract allow a refund. Brokers are to put deposits in a separate checking account pending completion of the contract. See earnest money.
Example: Whitman presented a $1000 check as an earnest money deposit on a home she would buy provided she could get a 10% rate, 30 year loan for 80% of the price. The broker deposited the check in an escrow account, and refunded it when Whitman could not arrange said loan.
At Equity Real Estate we are here to help you navigate the home buying and selling process. Give us a call with any questions!
*Barron's Real Estate Guides; Dictionary of Real Estate Terms