earnest money

earnest money
A sum of money paid by a buyer at the time of entering a contract to indicate the intention and ability of the buyer to carry out the contract. Normally such earnest money is applied against the purchase price. Often the contract provides for forfeiture of this sum if the buyer defaults. A deposit of part payment of purchase price on sale to be consummated in future. Bishop Ryan High School v. Lindberg, N.D., 370 N.W.2d 726, 728.
Import of term in real estate contract is that when comparatively small sum is paid down, it is an assurance that party is in earnest and good faith and that if his being in earnest and good faith fails, it will be forfeited. Mortenson v. Financial Growth, Inc., 23 Utah 2d 54, 456 P.2d 181, 184.
See also binder

Black's law dictionary. . 1990.

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Look at other dictionaries:

  • earnest money — earnest mon·ey n: money used as earnest Merriam Webster’s Dictionary of Law. Merriam Webster. 1996. earnest money …   Law dictionary

  • Earnest money — Earnest Ear nest, n. [Prob. corrupted fr. F. arrhes, L. arra, arrha, arrhabo, Gr. arrabw n, of Semitic origin, cf. Heb. [=e]r[=a]v[=o]n; or perh. fr. W. ernes, akin to Gael. earlas, perh. fr. L. arra. Cf. {Arles}, {Earles penny}.] 1. Something… …   The Collaborative International Dictionary of English

  • earnest money — money given to a seller by a buyer to demonstrate the buyer s good faith. If the deal falls through, the deposit is usually forfeited. Bloomberg Financial Dictionary * * * earnest money earnest money ➔ money * * * earnest money UK US noun [U] ►… …   Financial and business terms

  • Earnest Money — A deposit made to a seller showing the buyer s good faith in a transaction. Often used in real estate transactions, earnest money allows the buyer additional time when seeking financing. Earnest money is typically held jointly by the seller and… …   Investment dictionary

  • earnest money — A sum of money paid by a buyer at the time of entering a contract to indicate the intention and ability of the buyer to carry out the contract. Normally such earnest money is applied against the purchase price. Often the contract provides for… …   Black's law dictionary

  • earnest money contract — Also purchase agreement, purchase offer, sales agreement and earnest money contract. Agreement between buyer and seller of property which sets forth in general the price and terms of a proposed sale. Short Dictionary of (mostly American) Legal… …   Law dictionary

  • earnest money — money paid as security …   English contemporary dictionary

  • earnest money — noun money given by a buyer to a seller to bind a contract • Syn: ↑arles • Hypernyms: ↑earnest …   Useful english dictionary

  • earnest money — noun Money paid as a deposit to show intent to buy or to reserve an item to be purchased; especially, money accompanying an offer to buy real estate …   Wiktionary

  • earnest-money — n. Earnest, pay in advance (to bind a bargain), handsel …   New dictionary of synonyms

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