Good faith earnest money deposit

Good faith earnest money deposit

By: spiderbuber Date of post: 04.06.2017

Earnest money is a deposit made to a seller showing the buyer's good faith in a transaction.

Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. Earnest money is typically held jointly by the seller and buyer in a trust or escrow account. An earnest money deposit shows the seller that a buyer is serious about purchasing a property.

Earnest Money

When the transaction is finalized, the funds are put toward the buyer's down payment. If the deal falls through, the buyer may not be able to reclaim the deposit.

What is down payment? definition and meaning - pezewehemave.web.fc2.com

Typically, if the seller terminates the deal, the earnest money will be returned good faith earnest money deposit the buyer. When the buyer is responsible for retracting the offer, the selling a covered put option will usually be awarded the money.

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How to Protect Your Earnest Money Deposit

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