This is an advanced deposit paid by the buyer to convey good faith to the seller. Earnest money is usually held in escrow until the transaction has been closed and all conditions have been fulfilled. It can be utilized to offset the initial purchase price that was paid by the buyer. Should the seller default and the deal becomes unsuccessful, the deposit is then returned to the buyer.
Earnest Money Deposit
This is an advanced deposit paid by the buyer to convey good faith to the seller. Earnest money is usually held in escrow until the transaction has been closed and all conditions have been fulfilled. It can be utilized to offset the initial purchase price that was paid by the buyer. Should the seller default and the deal becomes unsuccessful, the deposit is then returned to the buyer.
