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In Montana real estate, a buyer makes offer on house, but does not have funds for...

In Montana real estate, a buyer makes offer on house, but does not have funds for earnest money deposit. Salesperson receives note to be paid within 15 days after acceptance of the offer. At minimum, what should the salesperson do?

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Answer #1

The earnest money is not the consideration to the contract. However if the buyer doesn’t deposit the earnest money with the escrow agent within a reasonable time after the execution of the contract, the buyer would be in default & the seller can exercise his rights under the default provision.

But the real estate contract is still enforceable without the earnest money. The exchange of the real estate for the purchase price is completely adequate consideration that is quite sufficient to support a contract even without the earnest money. It could be enforced by specific performance or by a suit for actual money damages.

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