Earnest money deposits are not legally essential to an offer to purchase, however, the buyer's earnest money deposit tends to dramatically increase the likelihood of closing. The seller is more receptive to the Offer to Purchase and the buyer is showing their commitment to the sale. Earnest money deposits of ŭꯠ to บꯠ on smaller transactions are typical. As a rule of thumb, the earnest money should be 10%┫% of the down payment.
The price paid and the price adjustments will be determined by the audited or un_audited balance sheet figures of the business on a specified date and these shall focus themselves on the adjustments that arise after the closing date due to changes in the accounts receivable and inventories of the business from a specified date up until the closing date.