Earnest money is money put down to demonstrate your seriousness about buying a home. It must be substantial enough to demonstrate good faith and is usually between 1-5% of the purchase price (though the amount can vary with local customs and conditions). If your offer is accepted, the earnest money becomes part of your down payment or closing costs. If the offer is rejected, your money is returned to you. If you back out of a deal, you may forfeit the entire amount.
Jaffrey.ca has been helping new and existing home buyers with purchasing, selling and renting properties all over the Greater Toronto Area. We have multiple offices in the GTA to serve you. Get in touch today for a free consultation.