In a real estate transaction, which party is primarily responsible for the earnest money deposit?

In a real estate transaction, the buyer is primarily responsible for the earnest money deposit. This deposit serves as a demonstration of the buyer's good faith and serious intention to purchase the property. It is typically paid at the time the purchase agreement is signed and is held in escrow until the closing of the transaction.

The earnest money is a way to provide reassurance to the seller that the buyer is committed to following through with the purchase, and it can also serve to protect the seller in case the buyer backs out of the sale without a valid reason. If the transaction successfully closes, the earnest money is generally applied to the buyer's down payment or closing costs. If the transaction does not close due to contingencies that favor the buyer, the earnest money is often returned to the buyer.

Other parties, such as the seller, escrow agent, or real estate agent, have their respective roles in the transaction, but the responsibility for providing the earnest money deposit lies squarely with the buyer.