Q: Can a buyer request to pay an earnest money deposit on a cash sale at closing?
I am looking into purchasing an investment property with cash received from a hard money lender (Keystone Funding Network) who funds 100% of the sale, fees, and rehab upon approval; however, an offer must be accepted by the seller before getting approval on the sale and contract. Per the guidelines of this company, it is suggested that an earnest money deposit be paid on closing (with a 30 day closing) as to avoid any out of pocket fees by the buyer. The agent working with the seller states that it is state law that this be paid once the contract is signed by both parties. Can a buyer request to pay an earnest money deposit on a cash sale at closing?
A:
The earnest money is to insure that the buyer follows through or loses the money.
If it's going to be paid at closing, what's the point.
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