Submit Earnest Money Deposit (EMD)
TLDR: Submitting your Earnest Money Deposit is the first task to complete after you ratify the contract.
Where does my earnest money deposit go?
Your earnest money will sit in an escrow account, managed either by the title company or attorney. Assuming you get to closing, your earnest money deposit will go toward the down payment and closing costs. If the agreement is terminated because of a contingency in the contract or because the seller is in breach of contract, you will likely get your earnest money deposit refunded to you. If, however, you end up backing out of the contract for a reason not stated in your contingencies, you will likely forfeit your earnest money deposit to the seller.
Not-So-Fun Fact
Things can get ugly if you and the seller disagree about whether your termination of the contract falls within the realm of what you agreed on. If you can't agree, you'll need to talk with an arbitrator, who won't come free.
Example: When can you cancel?
If you decide to terminate the contract, you'll have your earnest money deposit refunded to you if you have contingencies for the following situations:
You don't get approved for financing
The property doesn't appraise for the sales price you've agreed on
You and the seller can't come to an agreement on what should be repaired or credited from the inspection list
You decide that you don't want to live in this HOA or Condo Association
You'll likely forfeit your earnest money deposit to the seller if you cancel the contract because:
You decide you like a different house better
You realize that you don't like the neighbors
You don't adhere to the timelines in the contract