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Definitions of Earnest Money

Funds paid up front by a prospective buyer of real estate. It shows the buyer is serious about purchasing the property. It usually accompanies the offer to purchase and is paid to the buyer’s broker. The amount paid will be applied to the purchase at the time of closing. If the buyer defaults on the contract the seller could be entitled to the earnest money deposit. This definition of Earnest Money contributed by jeff-casterline.
Earnest Money is a deposit of funds by the buyer with the title company (or in some states, buyer's broker) handling the real estate transaction. Usually it amounts to about 1% of the purchase price and it is meant to show that the offer is being made in good faith. If the buyer were to close as planned, the earnest money is credited to the buyer at closing. If the buyer instead defaults under their contract the seller would have the option to keep the earnest money as reimbursement for damages.