Blog > What Is an Earnest Money Deposit, and Can I Lose It?
An earnest money deposit is a buyer’s good-faith payment showing serious intent to purchase. It’s typically held in escrow and credited toward the down payment or closing costs at settlement. If the buyer backs out for reasons allowed under contingencies, the deposit is refunded. However, walking away without contractual cause may forfeit the funds to the seller. This deposit reinforces commitment — both sides know the buyer is serious about closing the deal.
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