Definition: A portion of the down payment that accompanies a purchase agreement. When the purchase agreement is signed by the seller and returned to the buyer, the deposit is generally held in a trust account.
At the time of writing, Elizabeth Weintraub, DRE # 00697006, is a Broker-Associate at Lyon Real Estate in Sacramento, California.
Also Known As: Good Faith Deposit
Examples:
Most purchase agreements contain provisions that give the Earnest Money Deposit to the seller if the buyer defaults without cause on the contract.
