Definition
A deposit made by a buyer to demonstrate serious intent, credited toward the purchase at closing.
Example
A $15,000 earnest money deposit was held by the title company in escrow.
Related terms
Frequently asked questions
What does Earnest Money mean in real estate?
A deposit made by a buyer to demonstrate serious intent, credited toward the purchase at closing.
How is Earnest Money used in practice?
A $15,000 earnest money deposit was held by the title company in escrow.
This definition is provided for educational purposes. Legal and tax terminology can carry jurisdiction-specific meaning — confirm with a licensed professional before relying on it in a transaction.