What is typically required from buyers in a standard real estate transaction?

In a standard real estate transaction, a deposit is typically required from buyers as part of the offer to purchase a property. This deposit, often known as earnest money, demonstrates the buyer's serious intent to buy the property and helps to establish a level of commitment to follow through with the transaction. The deposit can also help to protect the seller's interests by providing some assurance that the buyer will proceed with the deal.

Proof of income may be required later during the financing process to secure a mortgage, but it is not a consistent requirement in the initial stages of a real estate transaction. A guarantee of purchase is not a standard practice in real estate and typically does not exist in typical transactional agreements. A signed purchase agreement is vital to formalize the terms of the sale but is not something that would be imposed prior to the buyers making an offer, which includes providing a deposit.

Thus, understanding that a deposit plays a critical role in demonstrating a buyer's commitment makes it a fundamental requirement in standard real estate transactions.