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Are Tahoe Home Buyers required to make an Increased Deposit?

Are Tahoe Home Buyers required to make an Increased Deposit?

April 10, 2013 By Laura Allen, Broker Associate, Tahoe Real Estate Agent, CA RE 01473598 | 530-414-1260

Are Tahoe Home Buyers required to make an Increased Deposit?

Are Tahoe Home Buyers required to make an Increased Deposit?In a competitive North Lake Tahoe second home real estate market, savvy buyers are asking how they can make their real estate purchase offer stand out.

Besides price, one way to make your Tahoe Second Home purchase contract stand out is to make sure you’ve offered a strong Initial Deposit, and have addressed the Increased Deposit issue.

Are Tahoe Home Buyers required to make an Increased Deposit?

The simple answer is NO, however, that may not best position your offer with a seller.  Let’s take a step back and address the Initial Deposit and then the Increased Deposit.

Here in the North Lake Tahoe area we typically use the California Association of REALTORS® (CAR) Residential Purchase Agreement (RPA) to buy and sell residential property.

The CAR-RPA has specific provisions under Item 3. FINANCE TERMS, Section A. INITIAL DEPOSIT followed by Section B. INCREASED DEPOSIT.  As of 04/09/2013 in the CAR-RPA currently reads like this:

3. FINANCE TERMS:

A. INITIAL DEPOSIT: Deposit shall be in the amount of $ ____________________________. 

(1) Buyer shall deliver deposit directly to Escrow Holder by personal check, ◊ electronic funds transfer, ◊ Other ________________ within 3 business days after acceptance (or ◊ Other __________________).

B. INCREASED DEPOSIT: Buyer shall deposit with Escrow Holder an increased deposit in the amount of …………..  $ ______________________________

Within ____ Days After Acceptance, or ◊________________________________________________.

If a liquidated damages clause is incorporated into this Agreement, Buyer and Seller shall sign a separate liquidated damages clause (CAR Form RID) for any increased deposit at the time it is deposited. 

If a Tahoe Buyer is in a Seller’s Market, or expects to be in a multiple offer situation, the initial deposit and the potential increased deposit can be factors used to help, or hurt their offer.

                    As a buyer, you with the help of your Tahoe agent, will determine

                    the initial deposit amount.

In the Tahoe area that typically runs from 1% to 3% of the purchase price that is offered, but can be any amount.  The Initial Deposit/Increased Deposits are known in other parts of the country as “Good Faith, or Earnest Money”.

                   Real estate is local, and here in the North Lake Tahoe region,

                   Buyers need to remember they are negotiating not only with the Seller,

                   but also with the Sellers’ Agent.  

When your offer doesn’t follow with what is typically done in the local area, a Sellers’ Agent is going to report back to their Seller that this is not what they would expect.  A Buyer can actually hurt their offer and chances of acceptance by doing less than what is typical for the area.

                  A way to make your Tahoe offer stand out as a strong, clean offer is to eliminate

                  the Increased Deposit provision and come in with an initial deposit of 3%, or more

                 of your purchase price. 

This sends a strong message to a Tahoe Seller that you are a serious Buyer.  You are financially well qualified by putting down a larger initial deposit and eliminating the second step of an Increase Deposit at a later date.

While all items in a contract are negotiable, following your Tahoe real estate agent’s advice as to what you need to do when it comes to the Initial Deposit and the Increased Deposit to best position yourself when making an offer to buy a Tahoe second home is advice that can serve you well.

                Knowing how to structure your Initial Deposit and Increased Deposit to

                best position your offer with a Tahoe seller are just a few ways to make your

               Tahoe Second Home Offer stand out!

To learn more about Initial Deposits check out When does a Tahoe Home Buyers make their Initial Deposit?

Thinking about making Lake Tahoe, California your second home? Check out the homes that are for sale here:

Want to see what condos are for sale in Lake Tahoe? Here are the current listings:

  • Tahoe City Homes for Sale
  • Tahoe City Condos for Sale
  • Tahoe City Lakefront Homes for Sale
  • Lake Tahoe Lakefront Homes for Sale
  • North Shore Lake Tahoe Homes for Sale
  • West Shore Lake Tahoe Homes for Sale

For all of your Tahoe real estate needs –

Laura A. Allen | 530.414.1260  | Laura@TahoeLaura.com
BROKER ASSOCIATE, Tahoe Real Estate Agent
CalRE# 01473598
Coldwell Banker, Tahoe City, CA CalRE#01908304

All information is deemed reliable, but is subject to change, and/or correction without notice.

Are Tahoe Home Buyers required to make an Increased Deposit?

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Laura Allen | Broker Associate

CalRE# 01473598 | 530.414.1260

Coldwell Banker Realty

475 N Lake Blvd, Tahoe City, CA 96145

Copyright © 2025 | Laura Allen | Broker Associate | CalRE# 01473598 | www.TahoeLauraRealEstate.com | 530-414-1260 Phone/Text | Laura@TahoeLaura.com Coldwell Banker Realty | 475 N. Lake Blvd., Tahoe City, CA 96145 | Log in

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