Earnest Money (Deposit)

Earnest money is the good-faith deposit a buyer puts down to show they are serious, held in escrow and applied toward the purchase at closing. The amount is negotiable and customary levels differ between Rhode Island and Massachusetts, where the deposit is often increased when the Purchase and Sale is signed. If the deal closes, the deposit counts toward the buyer's funds; if the buyer backs out for a reason not protected by a contingency, they can lose it. See earnest money and deposits in RI vs MA.