We backed out of the contract. Now, the seller refuses to sign a mutual release, and their lawyer sent a response they expect to close. They won't return the $15,000 earnest money. Our agent wants ...

Earnest money is a deposit that a buyer makes on a home they want to purchase. A contract is written up during the exchange of the earnest money that outlines the conditions for refunding the amount.

Usually, in a rent-to-own arrangement, the rent is above fair market value, since some percentage will be applied to a tenant’s earnest money deposit. (iStock) Perspective by Harvey S.

That milestone is reserved for your earnest money—a deposit you’ll make as part of your initial offer on a home. “It’s collected to bind the contract,” says Dana Bull, a real estate ...