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LeoGlossary: Earnest Money

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A deposit made by a perspective buyer to the seller to how serious intent. It is a good faith deposit indicating the level of interest in purchasing the property.

This can be an amount equivalent to 1%-2% of the purchase price. The earnest money can be used towards the down payment when the deal goes through. Sellers also receive a bit of security if the deal does fall apart.

LeoGlossary: Earnest Money | Ecency