Earnest money deposits and contingency clauses are usually specified in the sale contract.

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Earnest money deposits and contingency clauses are typically included in the sale contract to protect both the buyer and seller's interests. The earnest money deposit shows the seller that the buyer is serious about purchasing the property and can be forfeited if the buyer fails to follow through with the purchase. Contingency clauses outline specific conditions that must be met before the sale can be completed, such as a home inspection or mortgage approval. These clauses provide an opportunity for the buyer to back out of the sale if the conditions are not satisfied.

Earnest Money Deposits and Contingency Clauses Are Usually Specified in the Sale