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Tina, Lawyer
Category: Real Estate Law
Satisfied Customers: 33166
Experience:  17 years of legal experience including real estate law.
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HI one more question, Tina--I was sent a purchase agreement

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HI one more question, Tina--I was sent a purchase agreement for another house I made oral offer on--it is Nassau County, as well. Anyway, the purchase agreement is asking for 20% of asking price to be put in escrow for deposit--isn't it normally 1% of asking? Thanks again!

Hello again and thank you for requesting me.

Before I can give you an accurate answer to your question, please provide the following additional information:

What is the purchase price of the property?

I look forward to assisting you as soon as I have received this information. Thank you.

Customer: replied 3 years ago.



they want 78k in escrow via via check... sorry, so I guess not 20% but more like 15%...

I see. Thank you very much for clarifying that, Lysistara. That appears to be exactly 10% of the purchase price.

The amount required as earnest money is often dictated by the seller and 10% is not unheard of, although 5% or less is common. I would approach the seller or their agent to determine whether there is room to negotiate this amount so you are not required to pay such a large sum before closing on the property.

The seller likely wishes to avoid a breach of contract but there could be hidden defects as well that could be uncovered during inspection, so it can be risky to put so much in escrow until after you have had the appraisal and inspection completed. Perhaps they will be willing to permit you to put 5% down now and the balance of the $78k after the appraisal and inspection reports have been completed. That would be less risky for you.

I hope this helps clarify the situation for you. Please remember to rate my service once you have all the information you need so I will be compensated for my time from the deposit you posted with this website. If you have any other questions, please ask me – I’ll be happy to respond. Thank you!


Tina and 10 other Real Estate Law Specialists are ready to help you
Customer: replied 3 years ago.

Yes, 10% (sorry, I'm terrible at calculating averages in my head)--okay, thanks for the great advice--I will definitely try this as I feel it's a too much money to put down and to stand losing...



No worries. :) I think that would be less risky, but you should receive a refund of the earnest money if the purchase does not go through for some reason which is not caused by you, such as if the seller is unable to fulfill some obligation under the contract or your financing is not approved through no fault of your own. I thought I should note that since you don't typically forfeit that deposit unless you breach the agreement and the seller suffers damages. Even then, they are normally entitled to their actual damages but should refund any balance of the deposit remaining unless you agree to forfeit it in the event you breach the agreement.

Good luck to you!
Tina and 10 other Real Estate Law Specialists are ready to help you

Thank you for your positive rating of my service. It has been my pleasure to assist you and I hope you will ask for me should a future legal need arise.

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Customer: replied 3 years ago.

Will do, as well as add you a bonus....

Thank you very much. It is greatly appreciated.