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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 ?
To the latter camp, we might assign Stuckey's famous 1976 decryption of Rebus, 1955, and Thomas Crow's beautiful allegorical interpretation of the Combines in the present catalogue.
November 2003--through an aggressive direct-mail campaign, nearly 10,000 growers across the United States and Canada received a CD that provided comprehensive information on the new combines and platforms.
For the bouillon: Combine all ingredients, except stock, in a bowl and mix well.
This was my third year working on the Combines," says National Coordinator Dick Corbin, athletic director at Sharon (MA) H.
In fact, the percentage of combine buyers who go through the Gold Key Program has doubled since last year.
For the turnip sorbet: In a saucepan over medium heat, combine all ingredients.
In a medium bowl, combine all of the ingredients and season.
In the bowl of an electric mixer fitted with the paddle attachment, combine the milk, 11 ounces of the flour, the honey, and corn syrup and mix to combine.
Remove from the heat, add the onion, green pepper, poblano pepper, jalapeno pepper, bay leaf, and crab in a medium bowl and mix to c combine.
For the salad, in a medium bowl, combine, all of the ingredients and toss to combine.