earnest money

noun

Meaning

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.

Synonyms: deposit, down payment, good faith deposit, security deposit