Securing a contract
Earnest Money
Also called: Good Faith Deposit
A deposit a buyer puts up to show they are serious about a purchase contract.
What is a earnest money?
Earnest money is a deposit — held in escrow — that signals a buyer’s good-faith commitment to a purchase. If the buyer defaults outside the contract’s contingencies, the seller may be entitled to keep it; if the deal closes, it is credited toward the purchase.
Earnest money supports the contract but does not, by itself, put third parties on notice of the buyer’s interest. That is what recording a memorandum of contract does.
The specifics are governed by the contract and state law.
Do it with Jurably
We handle the paperwork end-to-end — you never touch a courthouse.