Reward for lost Kraken!
Join Date: Apr 2006
Thanked 141 Times in 138 Posts
Rep Power: 11
The purpose of earnest money is to qualify the buyer. To confirm that you do have SOME finances, SOME chance of making the down payment, and that you are committed to buying the boat--not just kicking tires.
It ensures that lookie-loos and dreamers aren't just wasting the broker's and seller's time.