What is a Deposit?

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A sum of money given in trust to the homeowner as a guarantee that a buyer is going to buy their home. If the purchase and sale agreement falls apart in acceptable ways as outlined in the agreement this deposit is returned to the buyer (such as a home inspection failing). If there is a breach of contract where the buyer exists a contract in ways not outlined in the agreement, the money will be remitted to the property owner. This is expected to go with a purchase and sale agreement, in anticipation that the larger sum of money will be delivered on the day the home closes. Sometimes referred to as an, ‘earnest money deposit.’