Deposit

From LawDepot Law Library

Definition of "Deposit"

A deposit is money that a buyer is required to provide to a seller up front, in order to convey that the buyer is serious about purchasing the property. The deposit prevents the seller from selling the property to someone else. Usually, the purchaser loses this 'earnest money' if the purchaser fails to complete the transaction. The deposit is applied to the purchase price if the transaction is completed.