earnest money

American  

noun

Law.

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

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Etymology

Origin of earnest money

First recorded in 1550–60

Example Sentences

You would also likely end up losing any deposits or earnest money you have paid thus far.

From MarketWatch

“If I had been on the listing side, I would have required additional earnest money that was non-refundable so there was more of a risk to the buyer.”

From The Wall Street Journal

If the buyer changes their mind for any reason within 14 days, Conner Homes refunds the earnest money and cancels the transaction.

From Seattle Times

“With new construction, you usually only have 15 to 30 days, depending on the contract, to get your earnest money back,” Rueth says.

From Washington Post

Some contracts will provide that the buyer loses his earnest money or down payment if the buyer fails to close on the purchase of a home.

From Washington Post

Related Words

• deposit