Earnest money is typically made in which form?

Earnest money is typically made in the form of a check because this method provides a tangible way to document the transaction and is widely accepted in real estate transactions. A check serves as a formal commitment from the buyer to the seller, indicating that the buyer is serious about purchasing the property. It also allows for clear record-keeping, which is important in any business transaction.

Using a check allows the seller or their agent to deposit the earnest money into an escrow account, from which it can be managed securely until the closing of the transaction. This is crucial in the real estate process, as it ensures that the funds are held safely while the terms of the sale are finalized.

While other forms of payment, like cash or wire transfer, are sometimes used, checks are more commonly accepted due to their ease of tracking and the assurance they provide to both parties. Credit card payments are generally not suitable for earnest money because they don’t offer the same level of commitment and can be reversed.