what's standard earnest money on a large mixed use property?

[Ashley Cooper]

I have a large tract of land that will likely be developed for mixed use. I was wondering what is standard for this kind of thing. Is it 1-3% of the purchase price? If the sale is conducted in parts and over a few years, does this affect the earnest? Also, is it customary to have a period of time before the earnest becomes non-refundable?

Thanks for any help!

[Charles Carillo]

@Ashley Cooper

For purchasing an already built mixed-use property; I would say 1%-3% for the EMD is accurate. Yes, MOST of the time there should be a period of time (inspection/due diligence period) when the money is refundable. After that it become hard or non-refundable. In hot markets, EMD might go non-refundable from the beginning (this is not suggested). Make sure you consult with an attorney.