Home Buyers Top 10 ?s #4

4.  What happens with my earnest money?

In South Dakota it is deposited within 24 hours of the acceptance of the offer.  The offer is accepted when both parties have signed the purchase agreement and any counter offers or addendums.  It stays in the trust account of the listing broker until closing and then is credited to your side of the settlement statement.  If the sale does not go thru because of a contingency that was not met, such as financing or home inspection, the money is returned to the buyer.  If the buyer decides not to go thru with the transaction and it is not based on a contingency in the purchase agreement the money goes to the seller.  The buyer may be liable for damages to the seller.  In the event that the earnest money is released before closing the buyer and seller are asked to sign a “release of earnest money” form.

Home Buyers Top 10 ?s #3

3.    Do I have to sell my home before I purchase a home?

If you have to sell your home to secure another property whether it is to free up equity in your current home of to be able to get financing on the next home.  You may make an offer on a home contingent to the sale of your home.  In doing this if the seller accepts your offer, you probably will be given 1-3 days to remove the contingency of selling your home if the seller receives another acceptable offer.  If you are asked to remove the contingency of selling your home you may choose to let the other party have the home you made an offer on or show proof that you are financially capable of purchasing the home without selling your present home. 

 The home you are purchasing will stay active contingent house on the MLS (Multiple Listing Service) and the seller’s agent can still advertise, hold open houses, and do what needs to be done to secure another offer on the property giving you first option to complete the transaction.  You will also want to get your home listed with a real estate professional in your area.