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What is an earnest money deposit (EMD)?

April 26, 2017deposit earnest EMD money

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What is an earnest money deposit (EMD)?

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An EMD is a good faith deposit by the buyer to the seller to show that they will follow through with the conveyance/closing. It is similar to a reservation fee. The Earnest Money Deposit should always be held by the licensed title company who is handling the conveyance/closing as it is considered unprofessional for the seller to hold the EMD. Generally, EMD’s are nonrefundable just like most reservation fees.