Earnest Money

In property negotiations, a deposit furnished by a buyer to demonstrate genuine intent in completing the purchase of a property. This deposit can, if the offer is accepted, be held by the seller’s representative and applied to the buyer’s portion of the remaining costs. Conversely, the earnest deposit will be returned to the buyer should the offer not be accepted or if certain agreed upon contingencies are not met. Deposit amounts can vary depending on regions and markets. Also called “earnest payment” or “good-faith deposit.”