A binder is an initial agreement, often coupled with a deposit, that indicates the purchaser's good faith in buying a piece of real estate. It is typically used to show the intent to buy and precedes a formal contract of sale.
A deposit signifies money paid in good faith to assure the performance of a contract, commonly used with sales contracts and leases. If the individual who put up the deposit fails to fulfill contract terms, the deposit could be forfeited unless contract conditions allow for a refund.
Earnest money is a deposit made by a purchaser of real estate to evidence good faith.
Good faith money, also known as earnest money, is a deposit made by a buyer to demonstrate serious interest and intent in purchasing a property. This deposit helps assure the seller of the buyer's commitment while the transaction details are finalized.
