An EMD is the buyers Earnest Money Deposit. 

The deposit is the money put "up front", usually in the form of a Check and accompanied by the contract offer for sale.   It is a deposit to demonstrate to the seller that the purchaser is serious about buying the property and is willing to put some money up in advance of the closing to prove their willingness to buy.  In other words, the deposit shows how "earnest" the buyer is about purchasing the property.

The amount of an EMD can vary, depending on the purchase price, the location of the property.  A larger EMD will make the offer to purchase stronger, since a larger EMD shows to the seller a higher level of seriousness on the part of the buyer.

The earnest money is deposited in a Third Party escrow account.  The Real Estate Broker Account or the Title Attorney are the 2 most common places for the EMD to be held.

The earnest money deposit should not to be confused with a down payment, which is the remaining amount that the purchaser is going to pay to buy the house, paid at closing in the form of a wire or a certified or cashier’s check.  The earnest money acts as a credit towards all other funds needed for settlement on the property.  It is not a extra charge or extra fee charged to buy the property.


If you are planning a move to or from the Silver Spring or Takoma Park, Maryland area, put my 25 years of local experience and expertise to work for you.  Licensed in Maryland and the District of Columbia. 

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Debbie Cook, Silver Spring and Takoma Park Maryland Real Estate Expert

Silver Spring, MD

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Long & Foster Real Estate, Inc

Address: Silver Spring, MD, 20910

Office Phone: (301) 587-3528

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