<P> Although money is the most common consideration, it is not a required element to have a valid real estate contract . An earnest money deposit from the buyer (s) customarily accompanies an offer to buy real estate and the deposit is held by a third party, like a title company, attorney or sometimes the seller . The amount, a small fraction of the total price, is listed in the contract, with the remainder of the cost to be paid at the closing . In some rare cases, other instruments of value, like notes and / or stock or other negotiable instruments can be used for consideration . Other hard assets, like gold, silver and anything of value can also be used or in other cases, love (where it can be shown to have existed between the parties). However, the earnest money deposit represents a credit towards the final sales price, which is usually the main or only consideration . </P> <P> The better the financial qualification of the buyer (s) is, the more likely the closing will be successfully completed, which is typically the goal of the seller . Any documentation demonstrating financial qualifications of the buyer (s), such as mortgage loan pre-approval or pre-qualification, may accompany a real estate offer to buy along with an earnest money check . When there are competing offers or when a lower offer is presented, the seller may be more likely to accept an offer from a buyer demonstrating evidence of being well qualified than from a buyer without such evidence . </P>

When must a seller provide earnest money when writing a purchase agreement