earnest money

noun

Pronunciation: ˈɜːrnɪst ˈmʌni

Definition

A deposit paid by a buyer to a seller to demonstrate good faith and intent to complete a transaction, typically held in escrow.

Examples

• We had to provide earnest money immediately after our offer on the property was accepted.

• The contract specifies that the earnest money will be forfeited if the buyer backs out without a valid reason.

• The real estate agent advised us to include a substantial earnest money deposit to make our offer more competitive.

Synonyms of earnest money

Words with a similar meaning to earnest money:

• deposit
• down payment
• good faith deposit
• security deposit

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