On a closing statement in a typical real estate transaction, the buyer's earnest money deposit is reflected as:

Houtan HormozianExpert on Real Estate, Finance and PropTech

Question Of The Day | Do You Know How Earnest Money Appears at Closing?

17 Jun 2026 · 1 min

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In this brief educational video, the host presents a multiple‑choice question about how a buyer’s earnest money deposit is shown on a typical real‑estate closing statement. The correct answer is that it appears as a credit to the buyer. The host explains that in accounting, debits represent costs while credits represent funds deposited, and that earnest money is generally credited toward the purchase price unless it is being returned to the buyer. The video ends with a call to like, tag a friend, and contact the company for more information.

Questions this video answers

Credit to the buyer.

Chapters

Get ready for question of the day! On a closing statement in a typical real estate transaction, the buyer's earnest money deposit is reflected as: A. Bill of sale. B. Credit to the buyer. C. Debit to the buyer. D. Credit to the seller and a debit to the buyer. The answer is letter B. Debits are costs and credits represent funds deposited. Earnest money deposits are generally considered a credit towards the buyer's purchase of the property unless it is a situation where the Earnest money is returned to the buyer. Learn something new? Give us a like, tag a friend, and let's keep the conversation going. Message us here or visit our website.