I was helping out my cousin when he was buying a property in Greater Noida a few years ago. The developer asked him to make the earnest money deposit and we were both confused. We didn’t know what it meant until then. We asked him about it and he politely answered telling us that it means security deposit money.
So what is earnest money deposit? It is a deposit paid by the buyer with an intent to buy a property. The earnest money provides a window to the buyer to conduct due diligence of the seller and property, arrange funds and make inspections.
Now that you know what is earnest money deposit means, let us understand a few more things about protecting earnest money deposit.
There must be a contract which mentions contingencies for funding and inspections.
Understand the terms and conditions clearly before signing a contract
You can keep the earnest money deposit in an escrow account and get a receipt for payment of earnest money deposit.
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Authors Of The Question
What is Earnest Money Deposit means?
Ishaan
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1 Answers
2 Year
2022-01-27T11:29:58+00:00 2022-01-27T16:05:19+00:00Comment
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