Earnest Money
Money paid by the buyer at the time an official
offer
to purchase is submitted to the seller, intended to
demonstrate the good faith of the buyer to complete the
purchase. Earnest money is applied against the purchase
price, however, it may be forfeited if the buyer fails to
complete the purchase under the terms of the sales
contract. |
Equity
The difference between the sales price of a property
and the
mortgage on the property. |
Escrow Account
A third party account used to retain funds including
the property owner's real estate taxes, buyer's earnest
money or
hazard insurance premiums. |
