In Texas actual property transactions, an excellent religion deposit, usually made by the client to the vendor upon accepting a suggestion, demonstrates dedication to the acquisition. This accretion, held in escrow till closing, is credited towards the client’s down fee and shutting prices. As an illustration, a deposit of 1% on a $300,000 dwelling could be $3,000. The exact quantity is not legally mandated however usually ranges from 1% to 2% of the acquisition value.
This apply gives sellers with assurance towards purchaser default and affords a level of monetary safety if the transaction falls via as a result of buyer-related points outlined within the contract. Traditionally, this custom has served as an emblem of excellent religion, signifying a severe intent to buy. The quantity can sign the client’s degree of dedication to the vendor and may strengthen a suggestion in aggressive markets.
