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Simple English definitions for legal terms

earnest payment

Read a random definition: tender back rule

A quick definition of earnest payment:

An earnest payment is money that a home buyer gives to the seller to show that they are serious about buying the house. The money is put into a special account called an escrow account. The buyer only gets the money back if they can't buy the house for reasons that were agreed upon in the contract. If the buyer changes their mind for a different reason, they lose the money.

A more thorough explanation:

Earnest Payment

An earnest payment is money that a home buyer sets aside into an escrow account after signing a sale contract with the seller. This payment shows the seller that the buyer is serious about purchasing the property. The contract outlines the terms of the sale, including conditions that must be met before the sale can be completed. If the buyer fails to meet these conditions, they can get their earnest payment back. However, if the buyer breaks the agreement for a reason not included in the contract, they forfeit the earnest payment.

For example, let's say John wants to buy a house from Jane. They sign a sale contract, and John puts $5,000 into an escrow account as an earnest payment. The contract states that John must get financing approval and a satisfactory home inspection before the sale can be completed. If John meets these conditions, the sale will go through, and the earnest payment will be applied to the purchase price. However, if John fails to meet these conditions, he can get his earnest payment back. If John decides not to buy the house for a reason not included in the contract, he forfeits the earnest payment.

Another example is when a buyer wants to purchase a car from a seller. They sign a sale contract, and the buyer puts $1,000 into an escrow account as an earnest payment. The contract states that the buyer must get a satisfactory inspection of the car before the sale can be completed. If the inspection goes well, the sale will go through, and the earnest payment will be applied to the purchase price. If the inspection does not go well, the buyer can get their earnest payment back.

These examples illustrate how an earnest payment works in a sale contract. It shows the seller that the buyer is serious about the purchase and provides some security for the seller. It also protects the buyer by allowing them to get their money back if certain conditions are not met.

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General chat about the legal profession.
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medicine is a scam
join the ethically ambiguous legal field instead
Dkk
18:57
I want to meet an attorney that defends clients who run into flat earth problems. I want an attorney that knows and believes in flat earth theory.
19:05
i want a flat earther for president. i want a guy who posts on 4chan for president. i want someone who mogs for president.
Dkk
19:18
Exactly. My version of that awful poem.
Dkk
19:19
I can accept a president with maybe one or two of the poems traits hut good God, all of them??? No ty.
windyMagician
19:20
president who respects sex is crazy
windyMagician
19:20
we had bill clinton already
Dkk
19:21
Bill Clinton, first and last black president
windyMagician
19:23
I want to go running but my leg feels weird
windyMagician
19:23
it doesn't hurt its just tingly
Dkk
19:26
It needs more alcohol. You tingle when your nerves need watering.
19:27
try stretching it maybe to see what's up
windyMagician
19:27
stretches make me think it's just soreness
windyMagician
19:27
I'm sober lol
Dkk
19:38
Anyone else get the google notification that your LSD password has been compromised lol. LSD got hacked.
20:48
what.jpg @Dkk
CynicalOops
21:03
You think you just fell out of a coconut tree?
jackfrost11770
21:10
nope dk
CynicalOops
22:37
Calvinamala Harris
jackfrost11770
23:16
should i start using letterboxed again
Dkk
23:25
@jackfrost11770: if you want but like it aint for me
dk do u ever eat at bk
Dkk
23:48
@chickenburgahfart: I would do that in the Army if really desperate for food or if I had to work through lunch. One of the few fast food places I go to.
bk so slept on
Dkk
0:23
I will take In N Out everyday over it when I can though.
texaslawhopefully
1:22
In N Out is not only the best fast food place, but the prices too are fantastic
Dkk
1:27
Indeed, indeed.
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