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When making an offer, home buyers often also provide ?earnest money,? which is usually 1-3 percent of the purchase price. If the offer is not accepted, the money is returned. If the offer is accepted, the money is held in a trust account and then applied to the purchase of the home.

Every situation is different, but broadly speaking, the seller gets to keep the earnest money if the buyer decides not to go through with the home purchase for reasons not specified as part of the contract.

When an offer to purchase is withdrawn or the acceptance is revoked without liability pursuant to Iowa Code chapter 558A, any earnest money deposit shall be promptly returned to the buyer without delay. The seller's consent and agreement to release the funds is not required.

A deposit made by the buyer to show their good faith in buying the home. This money is held in an escrow account by a real estate broker or settlement agent until the closing date. It provides the buyer with additional time to perform a title search, property appraisal, and home inspection before closing.

You do not need a real estate license in Iowa to wholesale real estate. Wholesaling involves assigning rights and responsibilities under the offer-to-purchase contract. It is legal unless you cross the line and begin marketing the property itself.

Is wholesaling real estate illegal? Absolutely not, as long as you abide by the laws set forth in your state. Wholesaling with a real estate license is legal, but you need to disclose your position as a real estate professional.