Earnest Money
Definition:
"Earnest money" is a noun that refers to a sum of money that a buyer gives to a seller to show that they are serious about making a purchase. This money is usually part of the total price and acts as a "good faith" deposit in a contract, especially in real estate transactions.
Usage Instructions:
- Earnest money is typically given when a buyer makes an offer on a house or property. - It shows the seller that the buyer is committed to completing the purchase. - If the sale goes through, the earnest money is usually applied to the purchase price. If the sale doesn't go through (under agreed conditions), the money may be returned to the buyer or kept by the seller.
Example Sentence:
"When Maria made an offer on the house, she included $5,000 as earnest money to show the seller she was serious."
Advanced Usage:
- In real estate contracts, the terms regarding the earnest money (like how much is required and under what conditions it can be returned) are often specified in the purchase agreement. - The amount of earnest money can vary depending on the market conditions, the price of the property, or local customs.
Word Variants:
- "Earnest" (adjective): Serious and sincere. - "Money" (noun): A medium of exchange, commonly in the form of coins and banknotes.
Different Meanings:
- "Earnest" can also mean serious or intense in other contexts. For example, "He spoke in an earnest tone about the importance of education."
Synonyms:
- Deposit - Good faith money - Security deposit (in some contexts)
Idioms and Phrasal Verbs:
While there are no specific idioms directly related to "earnest money," the term "put your money where your mouth is" can be used in a similar context to suggest that someone should back up their words with action, such as providing earnest money when making a serious offer.
Summary:
In summary, "earnest money" is an important concept in buying property, demonstrating a buyer's commitment to the purchase.