EARNEST MONEY

You know the correct way, you were taught incorrectly, or hopefully you are open to learning the correct and professional way to handle Earnest Money in your transactions.  I hate having to argue about this topic with anyone. We are consistent with our view on this: 

1. Georgia does not require Earnest Money (EMD) for a contract to be valid. 
2. The more EMD you have or the fact you try and not put down any EMD, MAY affect your Seller's interest in signing a contract.  Think about it, all other terms being equal, which contract would you rather sign - one with $10 EMD or one with $5,000 EMD? Don't try debating this - it's true.  
3. If you have EMD listed in your contract - YOU MUST PROVIDE IT or you will be in breach of that contract.  There is ONE exception.*
4. Earnest Money is separate PER CONTRACT.  You legally cannot use someone's EMD they are using in a different contract without their (Seller's) written consent.  
5. If you are DOUBLE CLOSING and BOTH contracts list earnest money, but the BC contract doesn't say you can use their EMD,  you are obligated to provide EMD and your End Buyer is obligated to provide EMD.  That is TWO (2) wires/checks sent to the Holder. 
6. PLEASE don't try and say that you didn't send it because your End Buyer sent in EMD.  Read #4 above. If you didn't know what is written above - you know it now. 
7. YOU are the one writing the contract. If you don't have the money to put down for Earnest Money, don't sign a document that you will do something when you can't.  

What does all this mean?  It means if you didn't put down EMD OR don't have any WRITTEN authorization to use your End Buyer's EMD ... we will not tell someone you put down EMD when you didn't. 

ONE LAST THING ... if your contract is so short that it does not describe in detail how EMD is to be handled if the transaction doesn't close, please be patient while we figure out who gets the EMD. You may not get it. Sometimes it takes a while to figure out how to handle it OR who gets it. Terminations and extensions need to be in WRITING. Timelines matter. 

*The one exception is that you ASSIGN your contract BEFORE you are obligated to send EMD. BUT keep in mind, with an assignment your End Buyer is obligated to send EMD by the same timeline in the Assigned Contract. If you gave yourself 3 days to send EMD and you Assign the contract on the 4th day, your Assignee is in default immediately.