Earnest money is put down before closing on a house to show you're serious about purchasing. Earnest money acts as a deposit on the property you're looking to buy.
When a buyer and seller enter into a purchase agreement:
+ the buyer delivers the earnest money upon signing
+ the seller takes the home off the market while the transaction moves through the process to closing.
Austin Community Land Trust Earnest Money
ACLT buyers must contribute a minimum of $1,000 earnest money. This money must be from their own personal funds. When the sales contract is received by a title company, the ACLT buyer must be able to put down their $1,000 in earnest money. The earnest money must also be reflected in both the Loan Estimate and the Closing Disclosures.
Applicant’s costs paid outside of closing may not be counted towards the $1,000 earnest money requirement.