What amount of money can you use as a “good faith deposit” to hold the Property under contract?
Lucky for me, I live in the Sunshine State of Florida, and $0.00 is required to make a real estate contract enforceable. Therefore, I offer $0.00 as a binder deposit on all of my offers to purchase. The exception to this rule is if you’re entering into an OPTION to Purchase Real Estate in Florida. In that case, a $100 Option Deposit (Consideration) in required to make the contract enforceable.
When it comes to binder deposits, the majority of sellers don’t ask for them at all. I’ll say that 1 out of every 30 sellers will ask “Well, what about a deposit”? That’s when I say “Ok I’ll give you $10 to make it legal” (that makes them feel better).
If you have no money at risk, then you have nothing to lose.
I tried to find the binder deposit requirements in other states, but I couldn’t find a quick reference that I could post here. Please, if you are familiar with the LAWS in your state (not a guess), then post your comments below and tell us which state you’re in, and what the minimum requirement is for a binder deposit on a purchase and sale agreement in your state.