If you know them personally then that's different I suppose, although still risky (to me anyway.) Personally I'd never purchase a home without a standard RE contract that adhered to state laws and deposit as it protects both parties.

Escrow money has nothing to do with realtors, it's standard for any real estate transaction. A good faith deposit could be anything, one dollar if you wanted, but generally is 1% of purchase price held by a third party (usually title company or lawyer) and applied to closing totals.

I'm sure you'll be fine, I'm not trying to be a jerk, it just sounded a bit unorthodox to me (and still does.) When somebody says "The house is ours" but only has a contract, then I tend to err on the side of caution. But if you're buying from a personal friend, then perhaps a laid back approach will work out just fine. In my experience, I trust nobody and have seen seemingly nice people become petty, small minded and vindictive if things don't go their way (low appraisal, inspection issues etc.) I sold my home to a very nice lady two months ago, and despite how well we got along, I made sure she gave me money immediately (she had 3 days from an executed contract) and stuck to her timeline. Thankfully she was great to work with and had her shit together. The couple before her, who also was great (we had them over with their kids), ended up being a nightmare and wasted 6 weeks of my time, lied and wouldn't respond to phone calls after only 3 weeks in.

Yes I'm in the real estate industry.

I've never heard of a seller not requiring any escrow money. Usually it's 1% or purchase price. They must really trust you? Is this an official state bar approved contract that realtors would use? You want to make sure they can't dump you if a higher offer comes in. Usually escrow money held in at a title company would secure a real estate deal and helps both parties adhere to a contract and be protected.

I hope you are having the home inspected? That's the best 200-400 bucks you'll ever spend in your life. You may also want to do an inspection specifically for termites as well if that's a wood frame home.

I'm not trying to be negative, but the house is not yours at all, not even close yet. You have inspections, appraisal, loan approval process and anything else that may come up in the meantime. Likewise I've seen plenty of deals fall apart and some literally fall apart at the closing table. I'm also really concerned that you have an accepted offer without any escrow money or title company involved.

She's one beautiful woman.

Maybe he's going to announce a series of upcoming lawsuits for 2013?

haha, you're funny.