Earnest Money (Noun)
Meaning
Money given by a buyer to a seller to bind a contract.
Classification
Nouns denoting possession and transfer of possession.
Examples
- The buyer was required to pay earnest money to secure the property and demonstrate their commitment to the purchase.
- Earnest money is typically held in escrow until the transaction is complete, at which point it is applied to the down payment.
- The seller was hesitant to accept the offer without a substantial amount of earnest money to ensure the buyer's seriousness.
- As part of the contract, the buyer agreed to forfeit the earnest money if they failed to complete the purchase within the specified timeframe.
- The real estate agent explained that the earnest money would be refundable if the buyer's financing fell through due to no fault of their own.