Good Funds and Earnest Money

The purpose of earnest money is to represent a buyer’s good faith in entering into a real estate contract. When the buyer and seller enter into a Contract to Buy and Sell Real Estate, the buyer agrees to pay a defined amount of earnest money, which will be held by an independent third party (most often the title company), for the benefit of both seller and buyer, and pursuant to the terms of the contract.

Specifically, section 4.3 of the contract outlines how the earnest money will be handled. It is important that buyers understand the contractual terms related to earnest money so that the proper funds are brought.

If the contract calls for good funds, below are the acceptable forms of funds that are defined as being good funds:

Please reach out to your Sales representative or Closer with any questions.

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