Earnest money is a deposit of money up front to indicate a sincere intention to complete a transaction. A deposit of earnest money may be required in certain offers, such as an offer to purchase real estate.
If the offer is accepted, the seller may keep the earnest money and apply it toward the purchase price, or the money may be kept in escrow until closing, and then applied to the buyer's closing costs. If the offer is rejected, the earnest money is usually returned, however, it may be forfeited if the buyer retracts the offer.
The Oregon Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance is a legal document used in the state of Oregon when a seller decides to sell their property without the assistance of a real estate broker. This comprehensive form serves as both a deposit receipt and an offer to sell real property, outlining the terms and conditions of the transaction. Key elements included in the Oregon Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance form are: 1. Parties Involved: The document clearly identifies the seller and the buyer involved in the real estate transaction. 2. Property Details: A detailed description of the property being sold, including the legal address, lot number, and any unique identifiers. 3. Purchase Price and Terms: The agreed-upon purchase price and any specific terms related to the transaction, such as financing options, down payment amount, and the desired closing date. 4. Deposit Amount: The document specifies the deposit amount provided by the buyer as earnest money, which demonstrates their serious intent to carry out the purchase. 5. Property Inspection: The form may include provisions for the buyer to conduct property inspections and outlines the rights and responsibilities of both parties during this process. 6. Title and Escrow: The document addresses the handling of the title and escrow process and identifies who will be responsible for associated costs. 7. Contingencies: Any contingencies or conditions that must be met for the sale to proceed, such as the buyer obtaining financing or approval of inspections, are outlined within the document. 8. Offer Acceptance: The form includes a section for the seller's acceptance of the buyer's offer, indicating their commitment to selling the property. Types of Oregon Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance: While the basic structure of the Oregon Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance remains consistent, there may be slight variations based on specific circumstances or additional addendums needed for certain situations. Some potential variations could include: 1. All-Cash Offer: In cases where the buyer intends to purchase the property without obtaining financing, there may be modifications to the form to reflect an all-cash offer. 2. As-Is Condition: If the property is being sold in "as-is" condition, additional clauses may be included to address any known defects or issues, and to clarify the responsibility of the buyer in conducting due diligence. 3. Seller Financing: If the seller agrees to provide financing to the buyer, the form may include provisions and terms related to the financing agreement, such as interest rates, repayment schedules, and default remedies. 4. Additional Contingencies: Depending on specific circumstances, additional contingencies may be included to address concerns like appraisal results or satisfactory loan approval. It is important to consult with a real estate attorney or professional when using the Oregon Deposit Receipt and Offer to Sell Real Property by Seller Acting Without Broker with Acceptance form, as they can provide guidance on any modifications or additional forms that may be required to suit individual circumstances.