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An amount of money paid to indicate good faith in a transaction before the transaction is completed.
Copyright © 2012, Campbell R. Harvey. All Rights Reserved.

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.
Farlex Financial Dictionary. © 2012 Farlex, Inc. All Rights Reserved


(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.

The Complete Real Estate Encyclopedia by Denise L. Evans, JD & O. William Evans, JD. Copyright © 2007 by The McGraw-Hill Companies, Inc.
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.
For the bouillon: Combine all ingredients, except stock, in a bowl and mix well.
Why are the Reebok Combines different from similar programs around the country?
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 gazpacho: In a medium bowl, combine all ingredients and set aside in refrigerator overnight.
Garvin Vis of Leota, Minn., says, "I was impressed to see how computers and robots are part of the process in bringing the right parts to the right combine on the assembly line.
For the grapefruit confit, in a medium saucepan over medium heat, combine all of the ingredients and simmer until almost dry, about 10 minutes.
For the spice mix, in a spice grinder, combine all of the ingredients and puree to a fine powder.
For the black cherry compote, in a medium bowl, combine the charnesland the sugar.
Add the butter and whisk to combine. Add the crawfish tails and simmer until warmed, about two minutes.
For the salad, in a medium bowl, combine, all of the ingredients and toss to combine.
Remove from the heat, transfer to a food mill, and puree In a medium bowl, combine the sweet potato, simple syrup, and egg yolk and season.