Which of the following defines "earnest money"?

Earnest money is a deposit made by a buyer to demonstrate their serious intent to purchase a property. This initial deposit is often held in escrow and serves as a good faith gesture to reassure the seller that the buyer is committed to following through with the transaction. The amount can vary, but it typically shows the seller that the buyer is serious about their offer, which can be particularly important in competitive real estate markets. If the transaction goes successfully through to closing, the earnest money is usually applied to the purchase price or closing costs.

This concept is crucial in real estate transactions as it establishes trust between the buyer and the seller, indicating that the buyer is financially capable and ready to proceed with the purchase.