ASA and PSIA Instructor
Join Date: Apr 2000
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But there are some folks feel the real purpose of earnest money is so that the broker can get his/her commission up front without worrying whether the seller will gyp them after the sale is completed.
A erroneous idea. As the broker usually manages the closing of the sale, he/she collects the fee as a check deducted right out of the proceeds of the sale, the buyer never gets the fee money and the broker doesn't need to worry about being paid later.
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