TeachMeFinance.com - explain earnest money
Earnest money --money put down by a potential buyer to show that he or
she is serious about purchasing the home; it becomes part of the
down payment if the offer is accepted, is returned if the offer
is rejected, or is forfeited if the buyer pulls out of the deal.
earnest money -- a sum of money given to bind an agreement, such as the sale of real estate, the advance of a loan or some other transaction requiring a deposit. Earnest money is forfeited by the donor if he or she fails to carry out the terms of the contract or agreement.
Earnest money -- Money given to bind a bargain. Arrha, the Latin designation, is occasionally used.
Copyright © 2005 by Mark McCracken, All Rights Reserved. TeachMeFinance.com is an informational website, and should not be used as a substitute for professional financial or legal advice. TeachMeFinance.com and its owner recommend consultation with a professional financial advisor prior to any investment or financial decision. Please read our disclaimer.