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Making An Offer >Keeping Your Earnest Money Safe

When you make an offer on a house, it is accompanied by an earnest money check. Earnest money is intended to demonstrate that you are "in earnest" about purchasing the property. The earnest money check is made out to the listing company. What happens to this check?

The party holding the check acts as an escrow agent until you go into closing. At that time you will receive credit for the amount of your check against the down payment and closing costs. Real estate brokers are required by law to keep escrow funds in a special account. These funds cannot be used to pay any other expenses associated with the sale. If you don't complete the transaction, the purchase contract determines the disposition of your earnest money funds. Be sure to review this part of your contract with the real estate agent.

If you are in default on your agreement, the funds may go to the sellers, so be sure that you understand the deadlines in order to avoid breach of contract and forfeiture of your deposit. If you have any questions, be sure to ask your real estate agent for advice.

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Q	Exactly how many islands are included in the group called the 1000 Islands?
A	There are actually 1,864 islands in the 80-mile stretch in the St. Lawrence River, between Ontario, Canada and New York State.
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James Van Note, REALTOR®, real estate agents and broker for Montclair, Upper Montclair and Glen Ridge, New Jersey home listings, property and land for sale - NUMBER1EXPERT(tm)

James Van Note
Rhodes, Van Note & Company Realtors
635 Valley Road
Upper Montclair, NJ. 07043
Phone: 973-818-7491
Fax: 973-744-7997
Email: jamesvannote@NUMBER1EXPERT.com
I have been actively involved in real estate for fifteen years as a sale associate, investor and developer and have been an agent for Rhodes Van Note for eleven years. I grew up in the Montclair community and participates in the local rugby and soccer teams. Growing up here gives me a first hand knowledge of the area and helps me match my clients' lifestyle with Montclair and our surrounding communities. My experience in real estate development and the construction field gives me the understanding of the fundamentals of a house and I am able to help both buyers and sellers assess their needs.

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