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Real Estate: Texas/Earnest Money


We sold our home and have had two extensions (now $2,000 EM). At the request of a 3rd extension we decided to terminate (Aug 23)and requested the full EMoney on Aug 26 but have heard nothing back from the Buyer.  Fell through because he didn't have the money down because the sale of his house fell through.  There was no contingency on the sale of his house to buy ours.  We have had it off the market in the prime season.  Now I have another offer.  Do I have to resolve the earnest money with previous buyer before I can move forward on this new buyer? Thanks so much for your help!

This is a good question. In Texas you don't have to resolve the earnest money before accepting a new offer. The money will go to the state until claimed by you or the buyer. We always have the buyer sign a release of earnest money form with the earnest money payable to the seller when the contract is first executed. Additionally we ask for proof of funds in most cases before accepting an offer.  It's worth it to have representation; if you don't want to pay the full 3% many firms work on a consulting basis. Own Realty Group also provides this service.

Real Estate: Texas

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Own Realty Group


Own Realty Group is a full service real estate brokerage representing buyers, sellers, tenants and investors of single family, and multi-family residential real estate.


Own Realty Group real estate professionals have over 20 years experience buying, selling, leasing and investing in real estate. Own Realty Group is also the investment management company for the Houston Real Estate Investors Network. Own Realty Group professionals host weekly seminars and workshops on buying, selling, leasing and investing. Since 2002 Own Realty Group professionals have completed thousands of transactions representing buyers, sellers, tenants and investors.

National Association of Realtors, Texas Association of Realtors, Houston Association of Realtors, Real Estate Investors Network, REI Connect

Introduction to Commercial Real Estate, Real Estate Brokerage I, Real Estate Principles I & II, Avoiding Landmines in the Earnest Money Contract, Short Sales and Seller Financing, Generating Buyers by Marketing the New Stimulus Plan, What Realtors Should Know About Reverse Mortgages, Property Management I, Real Estate Marketing I, Marketing - Business Brokerage, Opportunities and Advantages of Residential Service Contract, Law of Agency, Law of Contracts, Inspections for Real Estate Agents, Understanding the Fundamentals of Loan Processing and Underwriting, Introduction to Real Estate Investing, Real Estate Investing Principles, Real Estate Investment Strategy, Investing in Real Estate with Lease Options, Investment Feasibility Analysis

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