Dear Edith: When buying a home, is earnest money mandatory? Is it a must that I give my Realtor $500 as "good deed money," or earnest money? — J.C.

Answer: A money deposit is not a legal requirement for a sales contract. Your promise to buy is enough "consideration" to make the document binding.

There's a practical side to the matter, though. Without a deposit, you might have a hard time getting any offer accepted.

A seller would be nervous about ...

( Back to Article )