In our real estate deals you can often come across one or more :

• A Down Payment is typically Paid Upfront, Non-Refundable and is Credited towards the Purchase Price.
• A Deposit is Paid Upfront, Refundable and credited towards the Purchase Price.
• A Fee (usually an Option Fee) is Paid Upfront, Non-refundable and is not Credited towards the Purchase Price.
• A Commission (usually an Agent’s compensation) is Paid at Closing and Out of the Sale’s Proceeds of which it’s typically a percentage; since August 17, 2024, Sellers and Buyers pay for each other’s representation, while Dual-agency (Agent working for both parties) is illegal in many states.

Our deals are always tailored to the sellers’ and buyers’ needs, goals, and expectations, so these are not rules, but rather guidelines that must be verified and confirmed before being relied upon.

In some deals, or in some stages of them, it’s better to include a down payment, in others a deposit or a fee. A commission is likely present if an agent or broker is involved.

Make sure you know the specific use of any term and in particular of the ones above to avoid misunderstandings and disappointment, as we want every aspect of our deal to be clear before money exchanges hands.

Clarity makes good deals, and good deals are made in clarity.