Earnest Money

Business, Legal & Accounting Glossary

Definition: Earnest Money


Earnest Money

Quick Summary of Earnest Money


A deposit paid by a buyer to a seller to demonstrate intention to complete the purchase.




Examples of Earnest Money in a sentence


We got the earnest money and that was good because it meant that we would be completing the purchase soon.

My realtor friend tells me that when buying a home people frequently forget about how quickly they would need to have access to earnest money.

When we signed the contract to purchase our house, my wife and I agreed to pay the buyer a fee of $5,000 as earnest money to demonstrate our eagerness to buy the house.


Related Phrases


good faith deposit
escrow contract


Cite Term


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Earnest Money. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
March 29, 2024 https://payrollheaven.com/define/earnest-money/.
Chicago Manual of Style (CMS):
Earnest Money. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/earnest-money/ (accessed: March 29, 2024).
American Psychological Association (APA):
Earnest Money. PayrollHeaven.com. Retrieved March 29, 2024
, from PayrollHeaven.com website: https://payrollheaven.com/define/earnest-money/

Definition Sources


Definitions for Earnest Money are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 30th October, 2021 | 0 Views.