Unless you wheel and deal in the financial markets, the home purchase agreement is one of the most important contracts you’ll ever put your signature to. Today we take a look at some of the parts of the agreement you’ll want to get to know.
Earnest Money Deposit
Line 3 of the purchase agreement here in the Twin Cities deals with the amount of money you’ll be putting down as an earnest money deposit. Don’t confuse this with the down payment, which is a lender requirement.
The earnest money deposit shows the seller that you are earnest about buying the home. In Minnesota the deposit typically amounts to 1 percent of the purchase price of the home and it is kept in the broker’s trust account; in this case it will be held with Edina…