What does Deposit mean?

A deposit is a sum of money that is paid in advance as a guarantee or as a show of good faith. Deposits are commonly used in real estate transactions, and they may be required by a seller in order to hold a property or by a lender in order to secure a loan. Deposits may be refundable or non-refundable, depending on the terms of the agreement, and they may be applied to the purchase price or other fees at the time of closing.

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