PURCHASE AND SALE AGREEMENT DEPOSIT TERMS

Typically, on the day the P&S is signed, the Buyer will be required to place a deposit with the Seller’s realtor (or attorney) usually equal to 5% of the purchase price. This deposit is to help ensure that the Buyer does all that is necessary to obtain financing and close on the property under the terms of the P&S (these requirements are commonly referred to as the Buyer’s “due diligence”). If the Buyer fails to strictly adhere to these requirements, the Seller will likely sue for this deposit as his or her damages (i.e. the losses incurred for taking this house or condominium off the market).