Earnest money - who pays?

[Scott Schechtel]

Hello Everyone,

I'm fairly new to this site but have been in the investing trenches for the last few months now and have a question which is now becoming a grey area for me. As a wholesaler who locks up a property with a private seller, there is a line in the purchase and sale agreement for earnest money to be deposited within x hours or days of signing this contract. My question is, do I as the wholesaler put the EM check in escrow? If so, then why do I keep hearing from my potential buyers telling me not to write the EM and that they will do it? If I do assign the deal to an eager buyer, do they reimburse me for the EM check or do they write another one to the title company? If I can't find a buyer interested in the property during the inspection period and it is a non-refundable EM, am I out that EM? If so then i'm confused. Therein lies the grey area.

ANY feedback to this is worth its weight in gold.

Thanks in advance,

Scott