A buyer’s deposit can make or break an offer

Flickr photo by unjanedoan.

The convention in New York City and many other housing markets is for buyers to offer to put into escrow a 10 percent deposit when they go to contract to purchase a property.

That deposit, which is called a binder or earnest money in some areas, are funds that buyers put at risk. It is meant to ensure that the buyer ultimately conforms to the terms of the sale contract and then closes on the transaction. Continue reading