Latest Articles


November 16, 2018

Additional Deposit

Word of the day

Additional Deposit

The additional earnest money given by the buyer to the seller or to escrow under a purchase agreement. The additional deposit is usually tendered within a short period of time after acceptance of the offer. For example, the buyer might deposit $1,000 with her offer to purchase the seller’s $150,000 condominium unit and agree to pay an additional deposit of $4,000 within five working days after the seller’s acceptance. 

If the buyer breaches the contract, the seller may elect to keep all deposit money, including the additional deposit, as damages. If the buyer is late in making the additional deposit payment, the seller may be able to terminate the contract if a court holds that failure to make timely payment is a material breach. One way for the seller to ensure this result is to make the seller’s acceptance conditioned upon timely payment of the additional deposit.

Related Post

Industry, Residential Real Estate, Education

Library of Real Estate Clauses

December 16, 2018

Brokerage, Technology, Consumer News, Residential Real Estate, Education, Misc

Short Sales and Tips for Newly Licensed Real Estate Agents

December 5, 2018

Brokerage, Consumer News, Residential Real Estate, Misc

Unilateral Contract VS Bilateral Contract

November 23, 2018

2021 Real Town The Real Estate Network