Under most state laws, a POA terminates upon the death of the principal. When a person is incapacitated or in a fragile way, there are additional ways that a person can be given authority on the sale of real estate that will survive death, but normally a regular durable power of attorney will not be legally accepted after death of the principal. Louis XIV had as much power as it was possible for his time, but lacked the only one that really matters if you want to be a real, unaccountable tyrant: the power to create money. Louis XIV had huge power, and obviously abused it, he did a lot of harm to its own people, but in the end he was clearly held personally accountable and had to.
Earnest money is put down before closing on a house to show you’re serious about purchasing. It’s also known as a good faith deposit.
When a buyer and seller enter into a purchase agreement, the seller takes the home off the market while the transaction moves through the entire process to closing. If the deal falls through, the seller has to relist the home and start all over again, which could result in a big financial hit.
Earnest money protects the seller if the buyer backs out. It's typically around 1% – 3% of the sale price and is held in an escrow account until the deal is complete. The exact amount depends on what’s customary in your market. If all goes smoothly, the earnest money is applied to the buyer’s down payment or closing costs.
Money And Power Deal Realty
If the deal falls through due to a failed home inspection or any other contingencies listed in the contract (we’ll look at those contingencies in a bit), the buyer gets their earnest money back. The practice of depositing earnest money can decrease the likelihood of a buyer placing offers for multiple homes, then walking away after the seller takes the home off the market.
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