How much deposit?

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I am trying to buy a house and it was stipulated 10% of the purchase price. I want to change it before attorney review is over to 5% but the buyers refuse. I really like the house but the sellers want to sell "as is" meaning they are not willing to repair any problems that come out of the inspection. The house looks in pretty good condition but I don't feel comfortable with 10%.


Is 10% a normal deposit for a house? kEEP IN MIND this is the initial deposit not the deposit I will finally end up putting down.
Is 10% normal for an initial deposit?
Do you mean the deposit you put down with the Purchase agreement? Then later you put your 20% down payment?


When I bought my house (4 years ago) there was no minimum deposit at all. I think I submitted $500 with my form, the seller didn't have any input as to how much I deposited.


Maybe I'm overly skeptical but a seller that is selling "as is" and insists on a 10% deposit to hold the offer as the sale is being drawn up makes me feel like they're up to something.
I think it must be different up here.

Do you have to put a deposit down with your offer?

When I bought my house 4 years ago, you needed to give the bank 5%. I gave 10%, and I think that's what you have to do now.
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Here we put down earnest money and not a deposit. It's usually $500. But if it's an investment property, you can usually negotiate it down anywhere to $100.
curlyarca likes this.
3b (with 3c tendencies) on modified CG

Do you mean the deposit you put down with the Purchase agreement? Then later you put your 20% down payment?


When I bought my house (4 years ago) there was no minimum deposit at all. I think I submitted $500 with my form, the seller didn't have any input as to how much I deposited.


Maybe I'm overly skeptical but a seller that is selling "as is" and insists on a 10% deposit to hold the offer as the sale is being drawn up makes me feel like they're up to something.
Originally Posted by cailin
Yes, the initial deposit. Not what the bank requires. It's what you give soon after the offer is accepted. The attorney keeps it in escrow until closing.
I think it must be different up here.

Do you have to put a deposit down with your offer?

When I bought my house 4 years ago, you needed to give the bank 5%. I gave 10%, and I think that's what you have to do now.
Originally Posted by CurlyCanadian
That would be the down payment^^^

The deposit/earnest money is to show good faith that you are going to show up to the closing and follow thru on the purchase, assuming the seller keeps up her part (but language is often written in to give the buyer an "out" for various reasons including failure to find appropriate financing and a bad inspection).
curlyarca likes this.
3b (with 3c tendencies) on modified CG

I think it must be different up here.

Do you have to put a deposit down with your offer?

When I bought my house 4 years ago, you needed to give the bank 5%. I gave 10%, and I think that's what you have to do now.
Originally Posted by CurlyCanadian
That would be the down payment^^^

The deposit/earnest money is to show good faith that you are going to show up to the closing and follow thru on the purchase, assuming the seller keeps up her part (but language is often written in to give the buyer an "out" for various reasons including failure to find appropriate financing and a bad inspection).
Originally Posted by spiderlashes5000

That's what makes me give the sellers insisting on 10% the side eye. If I remember correctly the initial deposit or earnest money goes to the seller with the signed purchase agreement. And, as you say, if the contract is written well the buyer has an out once they get the results of the home inspection. If the home is being sold "as is" and violets finds out during an inspection that there's black mold, radon, poltergeists....whatever then I think the sellers get to keep that 10% if she backs out.
curlyarca and curlyprincess1 like this.
I think it must be different up here.

Do you have to put a deposit down with your offer?

When I bought my house 4 years ago, you needed to give the bank 5%. I gave 10%, and I think that's what you have to do now.
Originally Posted by CurlyCanadian
That would be the down payment^^^

The deposit/earnest money is to show good faith that you are going to show up to the closing and follow thru on the purchase, assuming the seller keeps up her part (but language is often written in to give the buyer an "out" for various reasons including failure to find appropriate financing and a bad inspection).
Originally Posted by spiderlashes5000

That's what makes me give the sellers insisting on 10% the side eye. If I remember correctly the initial deposit or earnest money goes to the seller with the signed purchase agreement. And, as you say, if the contract is written well the buyer has an out once they get the results of the home inspection. If the home is being sold "as is" and violets finds out during an inspection that there's black mold, radon, poltergeists....whatever then I think the sellers get to keep that 10% if she backs out.
Originally Posted by cailin
It could be written so that the buyer (violets) has an out for any reason after the inspection results come in.
3b (with 3c tendencies) on modified CG

You need the right people around you in this situation. I am wondering.
I think it must be different up here.

Do you have to put a deposit down with your offer?

When I bought my house 4 years ago, you needed to give the bank 5%. I gave 10%, and I think that's what you have to do now.
Originally Posted by CurlyCanadian
That would be the down payment^^^

The deposit/earnest money is to show good faith that you are going to show up to the closing and follow thru on the purchase, assuming the seller keeps up her part (but language is often written in to give the buyer an "out" for various reasons including failure to find appropriate financing and a bad inspection).
Originally Posted by spiderlashes5000
Once you put that out there, you don't get it back.

That would be the down payment^^^

The deposit/earnest money is to show good faith that you are going to show up to the closing and follow thru on the purchase, assuming the seller keeps up her part (but language is often written in to give the buyer an "out" for various reasons including failure to find appropriate financing and a bad inspection).
Originally Posted by spiderlashes5000

That's what makes me give the sellers insisting on 10% the side eye. If I remember correctly the initial deposit or earnest money goes to the seller with the signed purchase agreement. And, as you say, if the contract is written well the buyer has an out once they get the results of the home inspection. If the home is being sold "as is" and violets finds out during an inspection that there's black mold, radon, poltergeists....whatever then I think the sellers get to keep that 10% if she backs out.
Originally Posted by cailin
It could be written so that the buyer (violets) has an out for any reason after the inspection results come in.
Originally Posted by spiderlashes5000
No, this is all geared toward the seller, not the buyer.


That's what makes me give the sellers insisting on 10% the side eye. If I remember correctly the initial deposit or earnest money goes to the seller with the signed purchase agreement. And, as you say, if the contract is written well the buyer has an out once they get the results of the home inspection. If the home is being sold "as is" and violets finds out during an inspection that there's black mold, radon, poltergeists....whatever then I think the sellers get to keep that 10% if she backs out.
Originally Posted by cailin
It could be written so that the buyer (violets) has an out for any reason after the inspection results come in.
Originally Posted by spiderlashes5000
No, this is all geared toward the seller, not the buyer.
Originally Posted by curlyprincess1
They can negotiate it any way they want.
3b (with 3c tendencies) on modified CG

I spoke to the attorney and she said "as is" does not mean they can't make any modifications. She said that what you see is what you get. I still can ask them to pay what comes out of inspection.
I am very nervous about the whole thing. I did voice my concerns to the attorney. She assured me it is standard language.
I spoke to the attorney and she said "as is" does not mean they can't make any modifications. She said that what you see is what you get. I still can ask them to pay what comes out of inspection.
I am very nervous about the whole thing. I did voice my concerns to the attorney. She assured me it is standard language.
Originally Posted by violets
Make sure it says what you need it to say about being able to void the contract if you don't like the inspection or don't sign it.

If they can't/won't pay for any repairs, they can't/won't. You can't make them. But if you word it the right way, you will at least be able to walk away w/o losing your deposit.

Can you post what it says now?

Who is "the attorney?" Your attorney or the the seller's attorney?
3b (with 3c tendencies) on modified CG

violets if you are nervous about it, back out. This is what I love about the people around me. I know I won't be steered wrong. Good Luck!
I spoke to the attorney and she said "as is" does not mean they can't make any modifications. She said that what you see is what you get. I still can ask them to pay what comes out of inspection.
I am very nervous about the whole thing. I did voice my concerns to the attorney. She assured me it is standard language.
Originally Posted by violets
Make sure it says what you need it to say about being able to void the contract if you don't like the inspection or don't sign it.

If they can't/won't pay for any repairs, they can't/won't. You can't make them. But if you word it the right way, you will at least be able to walk away w/o losing your deposit.

Can you post what it says now?

Who is "the attorney?" Your attorney or the the seller's attorney?
Originally Posted by spiderlashes5000

The original offer contract talks about the inspection contingency. It says any structural, environmental, and a list of appliances. Then it says the buyer must inspect, present the inspection results to the seller, which the seller must remediate or the "BUYER MAY CANCEL THE CONTRACT" . That is fine.

In attorney review , the sellers added:
a. "Property is "sold as is" with no warranties or representations of any kind except as specifically set forth in the contract". "All other representations and warranties are expressly disclaimed".

B." In the event of loss or damage to the property exceeding 10% of the purchase price either the buyer or the seller may cancel the contract".

c. "Any conflicts, then the letter shall control." Meaning the later rules.

When I asked MY attorney about A, she said "as is" only means what you see is what you get.
When I asked her about B, she said that only means its a clause for the insurance company to make repairs if I still want to go forward with the buying after such loss.

I asked her how does this contract protect me? She said it protects me from environmental, structural, and anything that doesn't work in the house.

I still say, how can that be the case, when letter A above is in the contract!
I didn't sign the addendum yet.

I sent her an email and she said we will talk on Monday. The problem is that we already talked but I am not satisfied!
curlyprincess1 likes this.
I think what that means is that you can walk away with your deposit if you find the inspection to be unsatisfactory. The sellers aren't fixing anything, and that's their right. But you are protected by having the option to walk away if something comes up that you aren't willing to accept.
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I think what that means is that you can walk away with your deposit if you find the inspection to be unsatisfactory. The sellers aren't fixing anything, and that's their right. But you are protected by having the option to walk away if something comes up that you aren't willing to accept.
Originally Posted by Luuuuucy


Agreed.


I think B means, if there is a fire or something between the purchase agreement and the closing. When I bought my house we had the spring flood of 2010. Many homes in the area were underwater. I could have walked away if I wanted to.


Please ask your attny tomorrow what right a seller has to stipulate the amount of earnest money. I still don't get that and it would make me nervous.
Here earnest money isn't really a percentage, but usually anywhere from $1000-5000 (probably more on million+ properties). Our last purchase was $5000. If you look at it from the seller's standpoint, a higher earnest money deposit means a more serious buyer. People do walk away from contracts and forego the deposit, but it's easier to do with a smaller deposit. Here selling "as is" doesn't excuse the seller from disclosing all known defects, but may mean that they won't be willing to negotiate much on repairs. What kind of contingencies did you put in your accepted offer?
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