In The Resale Residential Contract Form 20-14, what details should be present in the earnest money section?

In the earnest money section of The Resale Residential Contract Form 20-14, it is essential to include the cash deposit amount and the name of the holding institution. This section serves to formalize the buyer’s commitment to the transaction by providing proof of their serious intent to purchase the property. The cash deposit amount indicates how much the buyer is willing to put down as earnest money, which can be a significant factor in the overall negotiation process. Including the name of the institution that will hold this deposit is also crucial, as it ensures that both parties are aware of where the funds will be secured, fostering trust in the transaction.

Other details, such as payment terms for the seller, buyers’ credit scores, or any discounts being offered, are not typically included in the earnest money section. These elements serve different purposes in the contract; the payment terms relate to how and when the purchase price will be paid, credit scores pertain to the buyer's financial eligibility for financing, and discounts are generally negotiated separately rather than being part of the earnest money details. Thus, focusing on the cash deposit amount and the holding institution aligns with the standard practices outlined in the contract.