WebSep 15, 2024 · While every markets is different, most real estate transactions include both an earnest money deposit and option fee. Before jumping into a transaction, brush up … WebSep 3, 2024 · While the parties denominated the P100,000 as option money, it actually partakes the nature of earnest money when considered with the other terms relating to the transaction.

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WebEARNEST MONEY vs OPTION MONEY b.4.1. EARNEST MONEY It is a partial payment of the purchase price & considered proof of the perfection of the contract. In Earnest Money, the money given is a part of purchase price. It is given only when there is already a sale. The buyer is bound to pay the balance. WebIt also serves as a proof of the perfection of the contract of sale. The rule is no more than a disputable presumption and prevails only in the absence of contrary or rebuttable … birch reduction alkyne

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WebEarnest Money vs. Option Money Once more, the SC in Oesmer, et al. v. Paraiso Dev. Corp., G. R. No. 157493, February 5, 2007, had the occasion to distinguish earnest money from option money. It said that earnest money and option money are not the same but distinguished thus: (a) earnest money is part of the purchase price, while option money … WebWhats the difference between earnest and option money? WebBy contrast, earnest money is usually held in escrow by a real estate agent or bank. While option fees aren't typically refunded, it may be possible for buyers to secure a refund pledge in particularly slow real estate markets. … birch recycling