inspections, buyer’s closing costs, etc.).
Spending Earnest Money Given to You
Do not believe that earnest money given at the time an offer is accepted is yours until the deal has closed and been recorded. There are too many stories about sellers who spent the deposit money prior to closing. When the transactions did not occur, for reasons such as financing contingency or failure of inspection or repair issues, the buyers had to fight or sue for a refund. Another advantage to using a real estate agent is that the agent is a neutral party who will hold the deposit for you until closing day, and make sure your contract dictates what happens to the funds if the transaction doesn’t close. Note that in North Carolina Due Diligence money and earnest money are two different things. Due Diligence money is paid to sellers directly to compensate them for taking the property off the market while the potential buyer conducts inspections. The Due Diligence money Due Diligence money is paid directly to sellers to compensate them for removing the property from the market while the potential buyer conducts inspections. Typically, the Due Diligence money is non-refundable to the buyer if they choose not to purchase the property. However, this may change if the seller or their agent misrepresented the property. Earnest money is generally put into escrow after an offer is accepted. The money *may* be returned to the buyer if the sale doesn't go through. Please consult with your closing attorney to understand the differences between Due Diligence and Earnest Money.
Forgetting to Cancel/Switch Utilities and Insurance
Many sellers neglect to notify utility companies when they are 62
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