because they spell out crucial info such as how much money you’re paying, when you pay it, under what conditions you can back out of the deal, and more. what it is: checking the home’s purchase price on your contract is par for the course, but you also have to cough up some money immediately, in the form of an earnest money deposit, or emd. once an offer is accepted, the money is typically held by the seller’s broker or a title company, to be used as a credit toward the buyer’s down payment and closing costs. the caveat: if you back out of the transaction for any reason or contingency outlined in the purchase agreement, you get your earnest money back (more on contingencies next). why it matters: contingencies protect you by giving you the ability to back out of the sale if something goes wrong, typically without losing your earnest money deposit, says kathleen marks, a real estate agent with united real estate in asheville, nc.