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Blue infographic explaining penitential earnest money: definition and purpose, consequences of withdrawal, valid contract, and taxation, with icons and arrows.

What is penitential earnest money and how does it work in a home sale?

What is penitential earnest money and how does it work in a home sale? When you find the ideal home or a committed buyer, the natural next step is usually to sign an earnest money contract. However, not all earnest money contracts are the same. Of the different types that exist in Spanish legislation, penitential earnest money is the most common and offers the greatest flexibility if either party decides...