At Equity Real Estate we know that real estate terms can sometimes be confusing. We are going to share with you some common real estate terms and their meanings to help give you a greater understanding when you are trying to buy or sell a home.
Earnest Money: a deposit made by a purchaser of real estate to evidence good faith.
Example: It is customary for the buyer to give the seller earnest money at the time a sales contract is signed. The earnest money is usually credited to the down payment at closing. Until closing the broker must hold the money in a separate account. See also commingle.
At Equity Real Estate we are here to help you navigate the home buying and selling process. Give us a call with any questions!
*Barron's Real Estate Guides; Dictionary of Real Estate Terms