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.

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.

How to Protect Your Earnest Money Deposit

Typically, if the seller terminates the deal, the earnest money will be returned to the buyer. When the buyer is responsible for pat lynch stock market training the offer, the seller will usually be awarded the money.

Dictionary Term What is earnest money check The Day. A measure of what it costs an investment company to operate a mutual fund.

Latest Videos PeerStreet Offers New Way to Bet on Housing New to Buying Bitcoin? This Mistake Could Cost You Guides Stock Basics Economics Basics Options Basics Exam Prep Series 7 Exam CFA Level 1 Series 65 Exam. Sophisticated content for financial advisors around investment strategies, industry trends, and advisor education.

Minnesota Residential Real Estate Purchase Agreements - Earnest Money - Gary C. Dahle, Attorney at Law

Retract Good Faith Money Purchase-Money Mortgage Settlement Agent Buyer's Market Simultaneous Closing - SIMO Owner Financing Vendor Note Soft Market. Content Library Articles Terms Videos Guides Slideshows FAQs Calculators Chart Advisor Stock Analysis Stock Simulator FXtrader Exam Prep Quizzer Net Worth Calculator.

Work With Investopedia About Us Advertise With Us Write For Us Contact Us Careers.

Get Free Newsletters Newsletters. All Rights Reserved Terms Of Use Privacy Policy.