Is earnest money required to make a contract legal and binding?
The short answer: no.
Deposits often provide evidence of a buyer’s commitment to the purchase, but they’re not required by law. A binding contract to purchase real estate only requires “consideration,” which is defined as something of value offered for something else of value.
According to the Florida Bar, “The formation of a contract is accomplished when there is an offer and acceptance between the contracting parties of the exchange of ‘consideration.’ This offer and acceptance are sometimes referred to as a ‘meeting of the minds.’ If the parties have not reached a meeting of the minds, then there is no agreement.”
Source: Does deposit acceptance turn an offer into a contract?
