Is earnest money the same thing as consideration?
Staff Q&A from the 63Hours team.
Ask clear questions about the Florida real estate course and learn from course-specific answers.
Is earnest money the same thing as consideration?
Staff Q&A from the 63Hours team.
Not necessarily. In the course's purchase-contract examples, the parties exchange promises: one promises to transfer the property and the other promises to pay. The earnest-money deposit supports performance and shows commitment, but it is not the only possible consideration. A missing deposit can still create a serious contractual issue under the agreement's terms.
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Discussion prompt: What promises were exchanged before the deposit became due?