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Deposit

(also called Earnest Money) A good faith deposit of a sum of money offered by the prospective purchaser at the time of the offer to purchase. These funds are typically deposited into an escrow account and held until the real estate closing takes place. At the closing, the buyer is most often given credit for the earnest money that has already been paid, but it some cases it may be returned to the buyer at closing. These funds may also be returned to the buyer in some cases if the contract on real property doesn’t go through to a final sale.

See also:
  • Deed
  • Deed of Trust
  • Default
  • Delinquency
  • Delivery
  • Deposit
  • Depreciation
  • Discount Points
  • Distress Sale
  • Down Payment
  • Dual Agent
  • Due Diligence
  • Due on Sale Clause

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