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Contract Series Paragraph 2

George Clements ~ Greenville, SC Real Estate

 

Paragraph 2 of the Contract For Sale deals is entitled "PRICE."  The paragraph looks something like this:

 

2. PRICE: The purchase price is___________________________________________________________________
($_________________________)to be paid as follows: $__________________________, to be held in trust by
_____________________________________________, Escrow Agent, as a deposit of earnest money until the
sale is closed, at which time it will be credited to Purchaser, or if no closing takes place, disbursed as herein
provided. At closing the balance must be paid by certified funds or wire transfer to complete this transaction.

 

This is another paragraph which tells the basics just like paragraph 1.  Paragraph 1 tells who and paragraph 2 tells how much.  In the first line the price is spelled out and the second blank with the dollar sign uses numbers.  The third blank is for the amount of earnest money that will be put down. 

The amount of earnest money can start at $500 and go up from there depending on the price of the house.  George can help you determine how much earnest money is acceptable.  The earnest money shows how earnest you are about the property. 

The forth blank shows who is holding the earnest money.  This can be either the real estate company that is representing the buyer or the company that is representing the seller. 

At closing, the earnest money is credited to the purchaser.  If the purchase price were $100,000 and $500 had been put towards earnest money then the purchaser would owe $99,500 at closing.  

The last sentence explains that the money for buying the property can only come in two forms, either certified funds or wire transfer.  If you are getting a loan, the lender will send the money to the closing attorney by wire transfer.  If you are putting some money down or paying all cash without a loan you will need certified funds.  This can be obtained by going to your bank and asking for the amount of money you need in certified funds.  Normally, you would have this made out to the closing attorney.  The exact amount needed is usually known a day or two before closing and George can go over this with and give you instructions for getting the right check.  

Comment balloon 0 commentsGeorge Clements • March 18 2008 10:37AM

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