Here is an example-
As part of the sales contract, you agree to pay a $5,000 earnest money deposit. So, you write a personal check for $5,000 and give it to your real estate agent, who delivers it to the selling agent to hold in escrow until closing.
If the sale goes through as planned, the $5,000 earnest money deposit is applied toward the home's purchase price at the closing and becomes part of your down payment. However, if the sale doesn't go through for some reason, the fate of the earnest money will depend on the specific circumstances and the terms of the sales contract.