when you are trying to buy a house and you pay 500. down for honesty money how long can they hold it ? and whe

Answer 1

If you make it to settlement the money is applied toward your closing cost.

If you back out because you changed your mind kiss the money goodbye

If you back out as a result of contract terms not being met you should receive you money quickly, however all parties must agree to the distribution of the money.

Normally after all parties have agreed you should have a check in hand within 10 business days.

Answer 2

If the contract falls apart, it is up to both Buyer & Seller to agree to the disposition of the monies held. Typically, the money goes back to the Buyer if in the Buyer's earnest efforts is not able to make the purchase.

If the contract comes to a close, the earnest money held in the non-interest bearing trust account will be applied toward your purchase.

I hope this helps!

Answer 3

it is called earnest money, but i like your term much better. so for honesty money, meaning that you honestly intend to go forward on all terms and conditions of the sales contract:

once the home inspection is done to your satisfaction so that you do not call your lawyer to get out of the deal (in which case, you or your real estate lawyer will write a letter requesting release of honesty money to the listing broker, because by law, the listing broker or sometimes one of the real estate attorneys or in CA, "the escrow," which is the title company) must retain it in a special protected "escrow account" that cannot be "comingled" with her operating expenses account until the deal closes.

and, once the attorneys have agreed on the legal wording contained in the contract, the honesty money is still kept in the protected escrow account for your benefit, until the deal closes.

and, once you obtain your mortgage per the terms of the contract, the honesty money is STILL kept in the protected escrow account, until the day of closing, at which time...

all of the honesty money is brought to the closing by the listing broker. it is credited towards your purchase price. so, therefore, you do not see it again. it is part of the sale. in effect, it reduces your mortgage amount.

you will only see it again if the deal collapses for reasons entirely beyond your control. so long as you live up to everything said in the contract, the honesty money that you put up, so that the seller knew that you were honest in wanting the house, it "rides" with the contract to the closing.

if the seller suddenly changes his mind, after the attorney's approval, then the seller has not acted honestly. therefore, the seller can be sued for breach of contract. you were honest in paying money to buy his house. if he was not honest to you in signing a contract to sell you his house, he does not deserve to get the honesty money, but he does deserve to get the boot up the butt in a lawsuit.

may you have a very nice, clean, honest purchase. and may your home be a happy one, based on respect and honesty to all that come and go from it. i like you!

Answer 4

Your realtor usually does a contract that has contingencies such as the home passing inspection and you getting financing. If those typical clauses aren't met, you get your money back. If the seller backs out, you get your money back but if you back out (and you can sue), you do not get your money back unless it was covered in the contract when you offered to buy the house.