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What is the earnest money contract?

The earnest money contract is a private agreement prior to the sale contract. It is the sum of money the buyer gives to the seller as a guarantee that they will purchase the property according to the agreed conditions. It is usually between 3% and 10% of the total price of the property. The most common is earnest money with the right to withdraw, which allows both the buyer and the seller to pull out of the sale contract before the deed is signed. 

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