What is earnest money?
Earnest money is a deposit a buyer makes after an offer is accepted to show good faith. It is usually held by a third party and applied toward the purchase at closing.
In practice
- The amount and deadlines are set in the purchase contract.
- Whether the buyer gets it back if the deal falls apart depends on the contract terms and contingencies.
General information, not legal, tax or financial advice. Rules vary by state and MLS.
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