{ March 2nd, 2010 }
Protecting Your Earnest Money
If you know this man, please let me know. He needs a home, and he's probably looking for a new Realtor. I can help him.
Imagine writing a fifty-three million dollar check (also known as $53,000,000) as a deposit on a real estate transaction. Mind you, this check represents a mere 10% of the overall $527 million price of the home that you’re buying. I think we can all agree that it’s a rather sizable check, nonetheless.
Now, since we’re already in fantasy land, think about this: let’s say that you have a change of heart. You no longer want the house. Guess what? You just lost $53 million dollars.
The good news is, you’re worth nearly $20 billion. While the above relayed story isn’t exactly what happened to Russian billionaire Mikhail Prokohorov, it is a cautionary tale to anyone purchasing real estate. Be aware of the terms of your contract, and be very aware of the various deadlines involved in your transaction.
The Relevant Linkage
Read about the Russian billionaire who lost his $53 millon deposit
Take a look at what a $527 million dollar home looks like
Learn about earnest money, an essential component to all real estate transactions
Edit Credit: Atlanta Journal Constitution
