What is an excess deposit?
Jack O'Donohue avatar
Written by Jack O'Donohue
Updated over a week ago

If you are the seller in a real estate transaction and there is an excess deposit, it typically means that you will receive additional funds. This is calculated by taking the total deposits made by the buyer and subtracting the real estate agent's commission from this amount. The calculation can be represented as follows:

Excess Deposit = Buyer’s Total Deposits−Realtor Commission

It's important to note that the realtor commission is a separate line item in the transaction. The real estate agent or the agency will handle the distribution of these funds, ensuring that you receive the excess deposit. This process is part of the closing and settlement procedure, and the specifics can vary depending on the terms agreed upon in the sale contract and local real estate regulations. Always verify the details with your real estate agent or Touchstone attorney to understand how the excess deposit will be managed in your specific case.

Did this answer your question?