Hope I can describe this properly. if in the purchase, the vendor's final settlement loan amount is higher(due to late payment charges during the purchase process) than the purchasers loan amount, can the owner use the 2% ernest deposit to settle the difference? or the ernest deposits belongs solely to the agent, and no one can touch that money?

thnx

Read the contract. Please.

sorry, what do you mean by that line?

vdfoo: seller owes the bank more than my loan amount. he has to settle that difference due to fault on his behalf. so wondering can he use the ernest deposit to pay the difference between his final settlement amount and my loan. *seller does not have money on hand to settle the difference.

I am the purchaser. would like to know normally what happens to the ernest deposit.

i see, but why would this be your worry?

depends on how much the ernest deposit and the agent's commission, usually the agent will set off the commission from the ernest deposit

And you as buyer need not worry anything about commission at all......just make sure you come up with diff sum and your bank draw down to make up the total... that it. The rest is the vendor/seller problem...

yah, and as a buyer, never ever pay commission