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An amount of money paid to indicate good faith in a transaction before the transaction is completed.

Earnest Money

A small amount of money that a seller requires a potential buyer to deposit before a transaction is completed. Earnest money ensures that the potential buyer is serious about the transaction and will be likely to complete it when the time comes. If the buyer subsequently withdraws from the deal, he/she usually forfeits the earnest money. It is common in real estate and securities (where it is usually called a good faith deposit). Earnest money reduces the risk to the seller. It is also called a binder.


(1) Money given as earnest money for an oral contract to purchase real estate, to bind the parties until such time as they can complete the necessary written contract. (2) A written instrument giving immediate casualty coverage for property, even though the insured may not have paid a premium or received a policy.(3) A temporary contract of title insurance in which the insurer agrees to issue a final policy if certain exceptions, such as prior mortgage liens, are removed at or before closing.

References in periodicals archive ?
Hans Gorlitzer, who works in the Coatings and Additives Business Unit at Evonik as head of business development in the Crosslinkers Business Line, believes the new technology has even more potential: "We aim to open up access to silane-modified binders for other applications too.
From inside your binder you can search for information and navigate easily.
Denison invited three binder suppliers to provide a solution to its requirements but eventually settled on a mixture of its own design with a lower binder percentage.
Binder suspected her singer husband of cheating on her, and two quarrelled often.
The design of a soil-binder mixture thus centres on the proper selection of two basic parameters: the strength grade of the binder (expressed in MPa), and the quantity (expressed in %) in which the binder is to be added to the soil, which has previously been analysed in terms of such parameters as grain size.
Driven by a rise in new housing starts and its ripple effect on the entire economy, robust demand for exterior architectural coatings is generating renewed interest in a versatile binder chemistry that meets low-VOC targets, offers formulation flexibility, and performs across the broad spectrum of substrates that comprise today's residential new build and repaint markets.
Polish experience in binder selection and HMA mix design process changed drastically over last 20 years' time period.
Szender, a third-year resident in the department of obstetrics and gynecology at the University of Texas, and his associates at the Brooke Army Medical Center, both in San Antonio, enrolled 75 patients in a randomized trial to determine the impact of a neoprene abdominopelvic binder on postoperative morphine use, pain, and ambulation in the first 24 hours after abdominal gynecologic surgery.
Use of a softer virgin binder grade (PG58-28) typically reduced the stiffness of the mixes.