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earnest payment

noun

Definitions of earnest payment

  • money paid by the buyer to the seller, especially in a real property transaction, to show that the buyer is serious about following through with buying the property; if the buyer ends up buying the property, the money acts as a first payment, and if the buyer eg breaches the contract or acts in bad faith, the money can be kept by the seller

    "The failure by a purchaser to close on the sale of the property within the allowable period may result in the forfeiture of the entire earnest payment."

Phrase Bank for earnest payment

Additional Notes for earnest payment

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