Definition of Earnest Money:
Earnest Money Deposit Orange County, California:
An earnest money deposit is what shows the seller that the buyer is serious about purchasing a property – it is a deposit made to a seller showing the buyer's good faith in a transaction. The earnest money is held jointly by the seller and buyer in a trust or escrow account. When the transaction is finalized, the funds are put toward the buyer's down payment. In Orange County, if the deal falls apart, normally the earnest money will be returned to the buyer – regardless of the circumstances. The buyer could go to court to retain the monies but it usually is not worth taking the home off the market for the proceedings.
These monies need to be deposited into the seller’s choice of escrow within one to three business days after agreeing with the seller on a price for the home to show that they're serious about the offer. Usually 1 – 3% of the purchase price, the money is deposited into an escrow account via a cashier's check, money order or occasional wire transfer.