Earnest Money Deposit


  • Like a deposit, the buyer gives the seller money when making a formal offer to show he or she is serious about the transaction.

A down payment.

backing, good faith gesture, earnest payment, cash deposit


Alternate Spellings
Good faith deposit, Goodfaith deposit, Earnest Payment, Good-faith deposit

Related Terms and Acronyms

  • Deposit Definition,
    • An act of putting a sum of money in to a bank account.
    • A sum of money put towards a given transaction. In a property purchase, a deposit signifies the intent to buy, which is paid to the vendor and applied to the principal cost.
  • Low Ball Offer Definition,
    • A way-below-market bid a buyer makes on a property or item.
  • Trust Account Definition,
    • An account used by a law firm or real estate agent to handle earnest money, funds set aside for repairs and other money that the buyer and seller put up before closing.
Compare. Calculate. Apply today.
Compare Mortgage RatesMortgage CalculatorsApply for a Mortgage