What is the difference between ERNEST MONEY and Escrow??

Question

I just need to know if I put up money and MIS-Quoted Escrow money instead of Ernest, can I get my money back>>

Answer 1

An earnest payment (sometimes called earnest money or simply Earnest, or alternatively a Good-faith deposit) is a deposit towards the purchase of real estate made by a buyer to demonstrate that he/she is serious (earnest) about wanting to complete the purchase. When a buyer makes an offer to buy residential real estate, he/she generally signs a contract and pays a sum acceptable to the seller by way of earnest money. The amount varies enormously, depending upon local custom and the state of the local market at the time of contract negotiations.

In very lively markets (as experienced on the East and West coasts of the US between 2000 and 2005) earnest money deposits could be as high as 5% of the sales price or more. In other communities as little as $500 or $1000 is acceptable.

If the seller accepts the offer, the earnest money is held in escrow by the real estate broker or settlement or Title company until closing and is then applied to the buyer's portion of the remaining costs. If the offer is rejected, the earnest money is usually returned, since no binding contract has been entered into. If the buyer retracts the offer or does not fulfill its obligations under the contract, the earnest is forfeited. Therefore, it is generally in the seller's best interest to see as high an earnest money deposit as possible.

Answer 2

This can be confusing when you talk to people from different parts of the country.

Earnest money is a part of the down payment you include when you present the offer for the property to the seller. The amount varies for a few hundred dollars to a few thousand.

Escrow is a type of account that is dedicated to a specific use. The real estate broker or title company will put the earnest money into an escrow account, meaning that all the money is that account is for earnest money for various buyers. No other moneys can be put into that account. This account does not earn interest.

Now, if you're in California, the time period from when you make the offer and the seller accepts it to the time you sign the documents transferring the property is called escrow.

Later, you might escrow your taxes and insurance as part of your mortgage payment. Escrow again is a special account where only taxes and insurance are stored until it's time to pay them. In California, they use the term impound for this account.

Answer 3

Ernest money is good faith that you want the place.
Escrow is actually a trust bank account where they deposit your earnest money to keep it safe until the closing occurs or the contract fails. So you didn't really mis-speak it is money in escrow and they should have understood quite clearly exactly what you were talking about! Write a letter to the Agent that you are working with that says simply that you are withdrawing from the contract due to___and want your money back. The broker will get into the transaction at that time and solve it. If you have performed according to the contract and the seller defaulted or the lender turned you down then your money should...probably come back to you. Good Luck. and best wishes!!!

Answer 4

Earnest money is a good faith deposit. Escrow is the period during which the purchase of the property takes place, as in "we have a 30 day escrow."

As long as you made your check out to the title/escrow company that's handling the escrow (like Fidelity National Title or First American Title) you should be fine. If you have an agent representing you, call them and ask. We get paid to answer questions and put out fires, so call us! : )

Answer 5

The others outlined the difference between earnest and escrow. You can get your earnest money deposit back if terms of the contract have not been fulfilled or if you have contingencies written into your contract that address terms that end the contract and 100% of your earnest money is returned.

If you have changed your mind or found another property, the seller can keep your earnest money.

Answer 6

Earnest Money Vs Down Payment

Answer 7

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Answer 8

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