earnest money

Definition

A deposit paid by a buyer to a seller to demonstrate intention to complete the purchase.

Use earnest money in a sentence

We got the earnest money and that was good because it meant that we would be completing the purchase soon.

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My realtor friend tells me that when buying a home people frequently forget about how quickly they would need to have access to earnest money.

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When we signed the contract to purchase our house, my wife and I agreed to pay the buyer a fee of $5,000 as earnest money to demonstrate our eagerness to buy the house.

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good faith deposit escrow contract