Hi, I'm Justin Konikow and welcome to TheClosersDaily, Episode 122. So, deposits. What are they? How do they work? A lot of people have questions about them. Are they a down payment? No, they're not a down payment. So, when you're doing a contract, there has to be some sort of consideration to make that contract valid, consideration in the terms of money. So you can actually put a deposit of a dollar on a contract if you wanted to, but are people gonna take you seriously? Lot of times when we're doing contracts, we're doing one to two percent of the value of the property, especially is when we're doing income-type properties cause they wanna see that you have the ability to close on the transaction, you know, and where does that money go? Depends on how the contract's written. In most cases, and in our market, we see very, very often, the deposit gets held by the listing brokerage in trust. If the buyers don't fulfill their conditions and their clauses are written the right way, and they kill the deal, a lot of times it gets returned to the buyer in full without deduction. Again, it's very important to know it depends on how the contract is written. There's different ways to write clauses, and we're going to cover that tomorrow. Thanks for watching.
Disclaimer: "Although care has been taken to ensure the accuracy, completeness and reliability of the information provided, we assume all information is subject to change and should be verified independently by the buyer and their agents.”