How does an Earnest Money Deposit (EMD) secure a real estate transaction, and what are its implications for small business owners looking to purchase property?

How does an Earnest Money Deposit (EMD) secure a real estate transaction, and what are its implications for small business owners looking to purchase property?

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Real Estate EMD and Financial Services

An Earnest Money Deposit (EMD) secures a real estate transaction by demonstrating the buyer’s commitment to the purchase. This can be particularly important for small business owners looking to purchase property as it protects against the seller accepting another offer. The EMD is typically held in an escrow account until closing when it's applied to the purchase price.