EMD

[Mike Green]

Is there any way to include emd into the contract without giving it up front?

[Michael Evans]

You put language into the purchase contract that controls the EMD. For example you can include language that says "Buy will pay an Earnest Money Deposit of $X,XXX that is payable to XYZ Title Company upon the close of escrow." You can also make the EMD payable upon the satisfaction and release of certain contingences, such as an appraisal whose value is at least equal to the purchase price and a home inspection that shows there are no major issues with the house and meets the satisfaction of the buyer (this is the best clause to use to get of a deal and still keep or get your EMD). Smart sellers won't fall for this type of language, and tricky sellers will insist on depositing EMD in escrow ASAP in order for them to accept your contract, so be careful. Some sellers know they have issues with their properties and just want to tie up your EMD with hopes that they can keep it as liquidated damages for you falling out of escrow. If you're not used to doing real estate deals, have an experience real estate attorney draw up your first contract. As with everything in life, you should do a cost benefit analysis.

God Bless You!