guaranty money的意思|示意

Guaranty money, also known as earnest money, is a one-time payment by the buyer to the seller or to their broker or attorney, typically as part of a real estate transaction. It is intended to show good faith on the part of the buyer and is proof of the buyer's commitment to purchase the property.

In most cases, guaranty money is held by the seller's broker or attorney, who manages the payment and releases it to the seller after the buyer has completed all the contractual stipulations set forth in the sales agreement. If the buyer fails to meet these conditions, the guaranty money may be forfeited in favor of the seller.

The amount of guaranty money varies from one transaction to another and is usually negotiated between the parties. In most cases, it ranges from 1% to 5% of the purchase price. For example, if the purchase price is US$100,000, then a 3% guaranty money will be US$3,000.

When the transaction is finalized, the guaranty money is typically applied toward the closing costs, such as the real estate agent’s commission and title insurance costs. In some cases, the guaranty money is refunded to the buyer.

In summary, guaranty money, also known as earnest money, is a one-time payment made by a buyer to show the pledge of good faith that they will complete the purchase. The amount of guaranty money can range from 1% to 5% of the purchase price and is typically used to cover closing costs or refunded to the buyer.