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THE DOWN PAYMENT CHECK WILL BE CASHED

THE DOWN PAYMENT CHECK WILL BE CASHED

If you are buying a home, the typical contract will require you to provide approximately 10% of the purchase price at the time of contract (this is commonly known as the “down payment”). The amount you put down at contract is a negotiated item, so if you intend to put down less than 10% you must address that issue at the time your offer is made.

The down payment check is typically a personal check (although foreclosure contracts will require a bank/cashier’s check for the contract down payment). Remember: the down payment check will be cashed, it just won’t be disbursed. The funds will leave your bank account and go into the escrow account of the Seller’s attorney. However, the funds will not be disbursed to the Seller until the time of closing.

You must make sure that you have enough funds in your checking account to cover the down payment check-if the check is dishonored (“bounces”) the Seller has a right to terminate the transaction.

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