US
Earnest money
Earnest money is the deposit a US buyer pays into escrow to show they intend to complete. If they default under the contract, the contract says who keeps it. It is not the English exchange deposit.
Also called Good-faith deposit.
How much
The amount is negotiated. It is often a few percent or a flat figure, and it is credited toward the price at closing if the sale completes. Do not quote a “standard” percent for a state you do not work in.
British deposits
In England the buyer pays a deposit, commonly 10 percent, on exchange of contracts. That is a different moment and a different set of rules. A holding deposit on a UK rental is a third, smaller thing again.
Questions
What does Earnest money mean?
Earnest money is the deposit a US buyer pays into escrow to show they intend to complete. If they default under the contract, the contract says who keeps it. It is not the English exchange deposit.
General information for agency staff, not legal advice. Rules and local practice change. Check the official source before you rely on a definition in a client letter.