What is an earnest money deposit?

An earnest money deposit is a part of a real estate transaction in South Carolina that ensures the buyer is serious about purchasing a property. This deposit is a good-faith payment put down in order to show the seller that the buyer has a real interest in buying the house. In South Carolina, the earnest money deposit is usually considered to be a part of the purchase price. This means that once the sale goes through and all the paperwork is signed, the buyer will receive back the earnest money deposit, minus any fees that the seller may charge. The amount of the earnest money deposit can range from 1-5% of the purchase price. In the case of the earnest money deposit, the buyer has the right to cancel the sale if certain conditions are not met. These conditions may include the appraised value of the home being lower than the purchase price, the buyer not being able to secure a mortgage, or any other contingencies specific to the purchase of the house. In this case, the earnest money deposit will be refunded to the buyer. Overall, the earnest money deposit is an important part of the process of buying a home in South Carolina, as it shows the seller that the buyer is serious about purchasing the property and gives the buyer an option to cancel the sale if things do not go as planned.

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What is an earnest money deposit?

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