The earnest money deposit is money placed into an escrow account at the beginning of a real estate transaction.
In the Greater Washington D.C. and Baltimore Area, an earnest money deposit or EMD is a sum of money that the buyer deposits into a non-interest-bearing account, typically with a title company. This deposit is usually anywhere between 1%-3% of the total sales price of the home and is made once a buyer's offer has been accepted by sellers.
The purpose of an earnest money deposit is to show the seller that the buyer is serious about the home purchase. It also holds the buyer accountable to the terms of the contract. Should the buyer breach the terms of the contract, the earnest money deposit could potentially be given to the seller as a result.
Learn more about the earnest money deposit and HomeBuyer Brokerage here.
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