Contract Deposit (Earnest Money) Escrow
A contract deposit is money held (typically in escrow) to evidence buyer commitment and to support contractual remedies if the buyer defaults, as defined in the purchase agreement. In NY practice, deposits are often held in attorney escrow pending closing or termination.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Contract
- Property types
- Residential and commercial sales
Closing Process
- Closing (Settlement)
- Closing Disclosure (CD)
- Escrow
- Escrow Agent
- Estoppel Certificate
- Holdback Escrow
- Loan Estimate (LE)
- Mansion Tax (Additional NYS Transfer Tax)
- Mortgage Recording Tax (NYC)
- NYC Real Property Transfer Tax (RPTT)
General information, not legal, tax or financial advice.