Earnest Money Deposit
An earnest money deposit is money placed (often into escrow) to demonstrate a buyer's seriousness after contract signing and to support performance incentives or remedies under the contract. Whether and when an earnest deposit is refundable depends on the contract's contingency and default provisions.
- Where it applies
- Generally, not specific to New York
- When it comes up
- Contract
- Property types
- Residential Sales; sometimes Commercial Sales
Read more in the Knowledge Base
- The Clean OfferSellers
- Competitive Offer Structuring: Beyond Nominal PriceSellers
- Attorney Speed and Deal CertaintySellers
Related terms
Residential Sales Terms
- Agency Disclosure
- Appraisal
- Attorney Review Period
- Best and Final Offer
- Mortgage Contingency
- Offer (Purchase Offer)
- Property Condition Disclosure Statement
- Transfer Taxes (NYS RETT, Mansion Tax, NYC RPTT)
General information, not legal, tax or financial advice.