refundable deposits on commercial

[Richard Belliveau]

Hello everyone. It seems like beauty is in the eye of the beholder in the case of a refundable deposit and when it goes hard......

I was in the mindset of 1% of purchase price is usually sufficient. I am speaking of commercial deals only now.

I have seen recently where some sellers want a lot more than that saying" what's the difference it is refundable anyway!"

This is true but from the buyers side too much is too much and it seems there should be a standard in the industry like a % of purchase price with deposit going hard( turns non refundable) in 21 to 30 days..... Buyer then can get their money back for any reason whatsoever.

My question and asking for certain feedback here:

What have you investors here usually pay for a deposit( refundable) and should it depend on the deal or something else?????

I would love to hear the feedback and since it is refundable it seems it should be in bold in contract that escrow agent sends money back to investor within the 21 days or 30..... with a written notice to seller, saying money back no matter what and for whatever reason during due diligence period.

Thoughts??

Thanks... Richard