Earnest Money Deposits

12 Months Ended

Dec. 31, 2015

EARNEST MONEY DEPOSITS

Earnest money deposits act as security for option agreements for the purchase of land for the construction of homes in the future. As of December 31, 2015 and 2014, there were 1,084 and 1,082 lots under option, respectively, with a total exercise price of approximately $79.3 million and $71.6 million, respectively. The option agreements in place at December 31, 2015 and 2014 provide for potential land purchase payments in each year through 2019.

These lot option contracts do not have takedown schedules. If each option agreement in place at December 31, 2015 was exercised, expected land purchase payments under these agreements would be as follows (in thousands):



	Total
2016	$	40,667
2017	24,031
2018	13,047
2019	1,593
	$	79,338