| Real Estate Terms -> What are Earnest Money Deposits |
Earnest Money Deposits
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What is an Earnest Money Deposit? |
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When a home buyer and a home seller enter into a real estate contract the buyer must offer a cash deposit to the seller to make the contract binding and to convince the seller that the buyer is serious about the purchase. This deposit is the Earnest Money Deposit. The amount of the deposit is completely negotiable between the buyer and seller but is typically several hundred to several thousand dollars. |
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