Earnest Money: Definition and How It Works in Real Estate
Earnest Money: Definition and How It Works in Real Estate
May 11, 2025
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“Understanding Earnest Money: What It Means for Buyers and Sellers” Buying or selling property? Here’s something every client should know — Earnest Money (or “reservation fee”) is a good faith deposit that shows the buyer’s serious intent to purchase a property. ✅ For Buyers: It secures your interest while the terms are finalized. Make sure it’s covered by a written agreement. ✅ For Sellers: It gives assurance that the buyer is committed — but also requires transparency and proper documentation.
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