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What is the difference between “Option Money” and “Earnest Money”?

April 26, 2017earnest money option money

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What is the difference between “Option Money” and “Earnest Money”?

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A. Generally, ‘Option money’ may be forfeited because the money is paid to acquire the ‘exclusive right to negotiate’ for a certain period of time, while ‘Earnest Money’ is part of the price and should be returned if the transaction does not materialize or there is recession.