Where does the deposit go?

where does the deposit go

 

Once you have an accepted contract for the New Orleans home you love, the first thing you have to do is ante up the deposit. Where does the deposit go? Here are the most common questions about the deposit check you have to write.

 

How much is the deposit?

It’s negotiable. Bank on it being 1% of the purchase price of the home.

 

Where does the deposit go?

It goes into a non-interest bearing account that is typically held by the listing brokerage. Sometimes the title company holds it. In rare circumstances, the buyer’s real estate company will hold it.

 

What happens to the deposit? 

If you move forward buying this particular New Orleans home, then it will be applied to your closing costs. Maybe you decide this isn’t the house for you, you get the deposit back as long as it’s still during your inspection period. If you try to back out after the inspection period, the seller gets to keep the deposit. There are other repercussions as well – like you can be sued for 10% of the house price. The sellers can even sue you for “specific performance”, which means they can try to force you to buy the house.

 

Can I write a check? 

Sometimes. Some companies allow personal checks. Others want certified funds or for the deposit to be wired. We will let you know which one for your home.

 

As your New Orleans real estate agent, we make it a priority that you don’t default on your end of the contract so that you won’t lose your deposit.

 

Let’s chat about buying your New Orleans home. Drop a message below or text us! 

 

Cold Feet: How do I get out of this?

 

Contact Team Be New Orleans