What Is Earnest Money?
A good-faith deposit a buyer submits with an offer to show serious intent to purchase, typically held in escrow and applied toward the purchase price at closing.
Earnest Money across 6 exams
Earnest Money appears on the following exams. Each defines it in the context candidates are tested on:
- Real Estate
- A good-faith deposit a buyer submits with an offer to show serious intent to purchase, typically held in escrow and applied toward the purchase price at closing.
- TX Broker
- A good-faith deposit a buyer submits to show serious intent to purchase, typically held in the broker's escrow account until closing or resolution of the contract. It is a frequently tested element of contract and trust-fund topics.
- TX Sales Agent
- A good-faith deposit a buyer provides when making an offer, showing serious intent and typically applied toward the purchase price at closing.
- AZ Salesperson
- A good-faith deposit a buyer submits with an offer to show serious intent to purchase. It is typically held in a neutral account and applied toward the purchase price or down payment at closing.
- NC Broker
- A good-faith deposit a buyer provides when making an offer, held in a trust account and applied toward the purchase price at closing or handled per the contract if the deal falls through.
- IL Broker
- A deposit a buyer submits to demonstrate good-faith intent to purchase a property. It is typically held in escrow and credited toward the purchase price at closing.