Posted by JPiper on January 12, 1999 at 11:49:58:
Option consideration is a non-refundable sum given to the optionor in consideration for the right, but not the obligation, to acquire a property within a set period of time, at a set price.
An earnest money deposit is money deposited by the buyer under the terms of a contract to purchase, to be forfeited if the buyer defaults, but to be returned if certain conditions of the contract are not met by the seller, the property, or the buyer. It?s kind of like a performance money that can be refunded under certain circumstances. It is applied to the purchase price if the sale is consummated.