earnest money


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Related to earnest money: option money, earnest money contract

Earnest Money

A sum of money paid by a buyer at the time of entering a contract to indicate the intention and ability of the buyer to carry out the contract. Normally such earnest money is applied against the purchase price. Often the contract provides for Forfeiture of this sum if the buyer defaults. A deposit of part payment of purchase price on sale to be consummated in future.

earnest money

noun collateral, collateral security, deposit, down payment, earnest, earnest payment, earnest pledge, guarantee, installment, pledge, security, stake
See also: handsel
References in periodicals archive ?
Mallya f lew away ` 14,653 cr deposited as earnest money by all telcos
According to the provisions of the Civil Code, the earnest money cannot be used for securing a preliminary contract, likewise a contract that must be concluded in the obligatory notarial form.
Under the Civil Code of the Republic of Lithuania, earnest money shall be deemed to be a monetary amount issued by one contracting party from the payments due to be paid by him under a contract to the other party to prove the conclusion of the contract and secure its performance.
With banks offering the earnest money to applicants, the scheme has brought back the fence sitters, who were looking for some financial assistance.