“Hi Gary. The only home Ive ever owned is a little condo I bought from my parents, so Im a rookie at homebuying. Now I need something bigger, with a yard for my dog, so I want to buy a house. Can you tell me how much my deposit will be and do I lose it if I dont buy the house?”
***ANSWER:
Deposits are typically 1-3% of the sales price, in the form of a personal check held by the agent when you write your offer.
Upon acceptance, the check is cashed by the escrow company (be sure you have the funds in your account to cover the check!).
Your deposit is only at risk if you cancel your purchase without the right to do so. Common rights to cancel include:
1. Contingency of your approval of your inspections and investigations of the property
2. Contingency for getting a home loan
3. Disapproval of disclosures
All contingencies have time limits written in the contract. If you cancel too late, you may be at risk to lose your deposit. And if you and the seller did not initial the liquidated damages clause in the contract, you may be at risk to the seller for damages. But its rare that a buyer ends up paying damages beyond the deposit.
If youd like our help finding you that house, call me. (858) 457-5368
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