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The main differences between earnest money and option money are amount, payee, and refundability. Although negotiated between buyers and sellers, earnest money is typically 1% of the sales price. The earnest money is made payable to a title company (another term negotiated between buyers and sellers) and deposited into an escrow account at the title company. […]

Upon execution of a residential contract, the buyer is required to deposit a defined amount as earnest money with a title company or the builder.  The amount of earnest money is one of numerous terms that are negotiated between buyers and sellers.  The amount of earnest money depends upon the local real estate market and […]

Your inspector said the A/C isn’t cooling so you want to have the A/C evaluated by a HVAC technician. The problem is your option period ends today and you can’t get an HVAC technician out to the property today. So you and the sellers have agreed to extend the option period by 2 days. Do […]

Make a minimum 20% down payment on your purchase of a Spring Texas home and the choice of an escrow account will be yours. A less than 20% down payment forfeits the choice. If the choice of an escrow account is yours, should or shouldn’t you establish it?  What are the pros and cons of […]

The option period is a defined length of time that has been negotiated and agreed upon by both buyers and sellers.  The option period starts the day AFTER the contract execution date and ends at 5 pm (local time) on the last day. For example: If you are buying a home in Spring Texas and you […]