The earnest money contract is of utmost importance, because it is the private agreement that will later be embodied in the public deed, and that supposes a disbursement of money that normally is destined to the payment of part of the price. But it is not always like that, and depending on the type of deposit, these can be a guarantee of the fulfillment of the contract, of the possibility of withdrawal with penalty, or of confirmation of the sale with advance payment of part of the price.
Earnest money contract: types
There are three types of earnest money that we can use in the earnest money contract:
- Confirmatory earnest money
- Penalty deposits
- Penitential earnest money
Each earnest money contract has different legal consequences; the lawyer should advise you on the most convenient type of earnest money contract, depending on the circumstances of the buyer and seller of the real estate.
¡Consult the expert real estate lawyer!