A preliminary agreement, secured by the payment of earnest money, between a buyer and seller as an offer to purchase real estate. An offer to purchase, or binder, secures the right to purchase real estate upon agreed terms for a limited period of time. If the buyer changes his mind or is unable to purchase, the earnest money is forfeited unless the binder expressly provides that it is to be refunded. For more information, see the "Real Estate Sales Contract" article in the "Real Estate In-Depth" section.
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The dynamics of investing can be very emotional and stressful if not properly managed. When you are aware of what is all involved you give yourself the power to avoid those situations or at least manage them effectively. That will make your investments more exciting, rewarding, and enjoyable. Those positive factors will only lead to greater success in all that achieve with investments and life.