« Back to Glossary Index

The deposit money given to the seller or his agent by the potential buyer upon the signing of the “agreement of sale” to show that he is serious about buying the house. If the sale is transacted, the earnest money is applied against the down-payment. If the sale falls through, the earnest money will be forfeited or lost unless the binder or offer to purchase expressly provides that it is refundable.

« Back to Glossary Index
Scroll to Top