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Play the IRA Game Smart - When planning for your retirement it is always wise to do it in the right order so that you have the plan with the...

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Good Faith Deposit

Good Faith Deposit – A good faith deposit or “earnest deposit” is a monetary payment, usually on real estate, that indicates to the seller that the buyer is genuinely intending to complete the purchase.  A good faith deposit shows the seller that the buyer is serious, and this sum is held in escrow while the purchase agreement is written.  If the seller rejects the buyer’s offer, the good faith deposit is returned.  If the buyer withdraws the contract, the good faith deposit is forfeited.  Most sellers prefer to negotiate large good faith deposits in order to discourage a buyer from terminating a contract.

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