Earnest Money? Security Deposit? Help please

[Brian Stone]

I searched, didn't find anything on here about this, but I keep reading everywhere that *I* need to put an earnest money deposit on a house I will be wholesaling. So I have a contract written up that says I will put $25.00 in earnest money into escrow (which I know means to put it with the title company or a 3rd party). What exactly does this do for anyone? Why would I need to put earnest money into escrow? Does it help the seller understand that I am serious about the deal? Also, is it refundable to me? And, do I physically write the check in front of the seller and say "here is the earnest money check, which I am taking to my title company"?

Annnnd, I read on here somewhere that the person I assign my contract to, the assignee, needs to put a security deposit down. Is this necessary? And if so, is THAT refundable to the Buyer that I am assigning the contract to?

One more thing! On some contracts, I noticed that in the area of assignment to the assignee, that it says "pay an assignment fee of $______ (payable $________ with signing of contract and balance at close)." What does that mean?

What does "Payable $______ with signing of contract and balance at close" mean? If i want an assignment fee, cant i just put "assignment fee of $_______" and that's it?

Thanks to everyone for putting up with my newb questions.

Brian