What is earnest money in a commercial real estate transaction?

Earnest money is a deposit made by a buyer to demonstrate a serious intent to purchase commercial property. The amount, timing, and conditions for handling the deposit are typically outlined in the purchase agreement.

The deposit is generally held by an agreed-upon escrow agent until closing or until the transaction ends according to the contract terms. The handling of earnest money depends on the specific agreement and circumstances of the transaction.

If you’re preparing to purchase commercial property, I’d be happy to explain how earnest money typically fits into the transaction process.