An earnest money deposit, is a sum of money that you deposit with the escrow company to show the seller that you are serious about the property under contract. If you follow through with the purchase after doing your due diligence and removing all contingencies, your deposit will be applied towards your down payment and/or closing costs. If money is left over, you will get it back from the escrow company after close of escrow. In the case that the transaction is cancelled, the deposit is refundable, so long as the buyer did not breach the contract or cancel after removing the contractual contingencies.

Read Also: FAQ: How much must I pay for my earnest money deposit?

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Justin Gramm is the founder and principal broker of Globella Buyers Realty, your San Diego Exclusive Buyer Brokerage. He also writes this blog, "For San Diego Home Buyers."

Exclusive Buyer Agents do not list homes for sale and never represent sellers. They have no "inventory" to try to sell you. They can represent you in purchasing any home. They are specialists at representing buyers only on the buyers' side of the transaction. Exclusive Buyer Agents work to get buyers the best price and terms when they buy a home.

If you have excellent credit and plan to buy a home or condo in San Diego County within 90 days, contact Justin Gramm to hire an agent on your side of the transaction. Call Justin at (858) 437-2662 or  E-mail.