Legal Question in Real Estate Law in North Carolina

Earnest money is typically given at the time you receive a written offer to purchase the property. Even if you are selling an acre of land to your neighbor, I would get a written offer to purchase and require the buyer to put down earnest money. Earnest money can be any amount - depending on how much land is being sold, it can be as little as $500 or as much as $10,000 or more.

The way the agreements are written is that they usually specify when closing is to occur and how the purchase price will be paid. Earnest money is credited towards the purchase price. Example: you are selling 1 acre of land for $25,000. Purchase price will be paid as follows: $500 earnest money and the balance of $24,500 at closing.

See a lawyer or have the buyer go to an attorney to have the attorney use this. If you know a realtor or a lawyer who is a member of the realty section of the NC bar, there is already an offer to purchase agreement drawn up which you can use.

The buyer usually selects the real estate attorney to prepare the deed. I don't know how the property is to be paid for. If you are doing owner-financing, then I suggest that you get your own attorney and have the documents done properly. You will need a deed and deed of trust.

Money changes hands at closing. You sign the deed at closing and hand over the keys to the buyer and he hands you a check or cash for the purchase price (unless this is through a mortgage company for the buyer; in such case the buyer's lawyer cuts you a check).