Earnest money is included with a Purchase agreement to show commitment from the buyer towards completing the transaction for a new home. It covers the costs of the seller removing the home from the active market as closing services are prepared for the transfer to the new owner. Earnest money can be protected with contingencies. If the buyer completes the transaction the earnest money is applied to down payment funds. If the buyer walks away from the transaction funds may be subject to surrender to the seller. Contact your agent for more details.