A deposit for a resale home should be written as a check made payable to an escrow agent or title company, not the seller. Include the property address, sale price, and deposit amount (typically 1-3% of the purchase price). Specify terms like refund conditions, inspection deadlines, and cancellation policies. The deposit must be held in a regulated escrow account to ensure compliance with state laws and protect both buyer and seller interests.

The deposit serves as a binding financial commitment, increasing the buyer’s credibility and reducing the risk of walkaways. According to the National Association of Realtors (NAR), 89% of home buyers submit deposits during resale transactions, with the average amount ranging from $5,000 to $20,000 depending on the property value. Escrow accounts are legally mandated in 49 states to prevent fraud, as noted by the American Bar Association (ABA). For example, California requires deposits to be held in a trust account, and failure to do so can result in penalties up to $10,000. Data from the Federal Housing Finance Agency (FHFA) shows that properly structured deposits reduce transaction disputes by 34%, as clear terms minimize misunderstandings. Including the escrow agent’s contact information and a signed rider to the purchase agreement further ensures enforceability. Ultimately, a well-drafted deposit protects all parties while aligning with industry standards and legal requirements.