[kitscottage]

In CT, you put 1% of your first offering price while you negotiate. You then put in an additional 19% (to make up 20% of the agreed upon purchase price) at the time of contract signing (usually 2 weeks). This money is held in escrow until all the contingencies are met (mortgage, building insp, etc). If the buyer does not qualify for the mortgage, or if they don’t like things in the building inspection, then the 20% is returned and the offer is rescinded. If all contingencies are met and the buyers back out for no reason (buyer’s remorse) prior to closing, they stand to lose that money.