An Earnest Money Agreement (also known as an EM or deposit agreement) is a contractual commitment from a prospective buyer to purchase a particular property. It is usually expressed in monetary form and shows that the buyer is serious about completing the transaction. The EM also acts as a form of security for both parties involved; if the buyer fails to go through with the sale, the seller will be able to keep the money as compensation for their losses. Additionally, the EM can provide incentives for buyers to commit to agreements more quickly since they are risking real money in the process. By providing these safeguards and incentives, EM agreements are integral to many successful business deals when it comes to buying and selling real estate.