agency

earnest money

Earnest money is a deposit made by a buyer with an offer or purchase agreement to show good faith and serious intent to complete the sale. It is usually held in a broker's trust or escrow account, or by a title company or attorney, and is credited toward the buyer's costs at closing. If the buyer defaults without a valid contingency, the seller may keep it, often as liquidated damages. Earnest money is not legally required for a valid contract.