earnest money

Học thuật
Thân thiện
earnest money

The buyer hands over earnest money to the seller at the signing table.

Definition
  1. Noun:
    • Money given by a buyer to a seller to bind a contract: A sum of money paid by a prospective buyer to a seller to demonstrate the buyer's serious intent and commitment to complete a transaction, such as the purchase of real estate or a business. This payment is typically held in escrow and is often applied toward the final purchase price if the deal is completed.
Usage Examples
  • Noun:
    • The buyer provided $10,000 in earnest money to show good faith in the home purchase.
    • The contract stipulates that the earnest money will be forfeited if the buyer backs out without a valid contingency.
    • They required a larger amount of earnest money due to the competitive nature of the real estate market.
Advanced Usage
  • "To put down earnest money": To make an earnest money payment.
    • We put down earnest money to secure our offer on the house.
  • "Earnest money deposit (EMD)": A common formal term for earnest money in real estate contracts.
    • The earnest money deposit is held by a third-party escrow agent.
Variants and Related Words
  • Deposit (n): A sum of money placed in advance as a pledge or part payment. (Note: While similar, a general "deposit" can be for various purposes, whereas "earnest money" is specific to binding a purchase contract.)
  • Down payment (n): An initial payment made when something is bought on credit. (Note: A down payment is typically a larger, formal part of the purchase price, while earnest money is a smaller, preliminary good-faith payment.)
  • Security deposit (n): Money paid in advance to protect against potential damage or default, often in a rental agreement.
Synonyms
  • Binder: A sum of money paid to secure an agreement.
  • Good-faith money: Money paid to demonstrate serious intent.
Related Phrases
  • Forfeit earnest money: To lose the right to the earnest money due to failure to fulfill contract terms.
    • If you fail to secure financing, you may forfeit your earnest money.
  • Release of earnest money: The process of disbursing the held funds, typically to the seller upon deal completion or back to the buyer if a contingency is invoked.
    • The release of earnest money to the seller occurred at closing.
earnest money

The buyer hands over earnest money to the seller at the signing table.

Noun
  1. money given by a buyer to a seller to bind a contract

Từ đồng nghĩa