Inspection Period – STEP 1 – Earnest funds and Option Check

EARNEST MONEY*

We have agreed to provide earnest money to be deposited at the title company (see page 1 of the one to four residential contract, section 5). We can submit these funds by personal check, wire transfer or cashier’s check. Please see my email for details on the payee. Once the title company receives the funds they will send us a receipt. This fee has to be submitted within 3 days of executed date of your contract.

*Earnest funds go towards the balance due at closing. They are not additional funds. They are funds that are paid in advance of closing but applied towards your balance.

Sample Earnest Money Paragraph

OPTION FEE**

We have agreed to provide an option fee to be paid to the property owner ASAP. See my email for payee information. (see page 8 of the one to four residential contract, section 23). Once submitted, I will forward a receipt. Ideally the same day the contract is executed. The option fee allows you the time to inspect the home within a set number of days and be able to cancel if you desire. If the option fee is not paid, there is not option period and the contract may not be canceled without penalty and default.

Option Fee Paragraph

** The option fee should not be mailed to the title company. This payment should be delivered to the property owner or the listing agent only. These will also be credited to you at closing unless you decide to cancel the deal within the option period.


Inspection Period – STEP 2 – HOME INSPECTIONS