earnest money deposit

Definition

See earnest money, but longer and more official-sounding. Because real estate professionals get paid by the syllable.

Example Usage

The contract specified a $5,000 earnest money deposit within 48 hours, which seemed reasonable until their bank flagged it as suspicious activity.

Origin

Extended version of 'earnest money' used in formal purchase agreements

Fun Fact

Despite being called a 'deposit,' earnest money is typically held in escrow by a third party, not by the seller, preventing anyone from spending it on boat payments.

Source: Real estate contract terminology

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