earnest money

earnest money definition - business

earnest money

Money advanced by a buyer to a seller as proof that an agreed-upon purchase will be completed. Earnest money is generally subject to forfeiture in the event the buyer withdraws from the transaction. See also good faith deposit 1.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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