My question is when it comes time to put a property under contract is it legal to give the seller a $10 bill as earnest money and have them sign off on it or do you need a check or money order to send to the title company? Thanks
I don't recommend ever giving the seller cash...even if its just $10. Don't practice that. If the deal goes south, you're pretty much out of your money. Put in the contract that the deposit/earnest money will be held in escrow at _________ Title Company and it will be applied to the purchase price (your offer) and the balance will be paid at closing.
I have NEVER ran into a problem where the seller has a issue with this.
I'll also give you another freebie for today since I'm new to the forums...
When you contract the property and you found a buyer...ALWAYS ask your buyer for a bigger deposit than what you put down on the property. That way if for some reason they back out at the last minute and cause you to lose the deal, at least it wasn't a total loss for you. Let's say you did put down $10 and you asked you buyer for $1000 and the deal fell through. Well you're now $990 richer IF you put the right clauses in your contract to protect that deposit you got from your buyer.
Additionally, you can also add clauses in the contract where you don't lose the $10 deposit either.
Kenny Rushing