Which of the following terms is synonymous with deposit in real estate transactions?

In real estate transactions, the term most synonymous with "deposit" is "good faith deposits." A good faith deposit, often referred to as an earnest money deposit, is a monetary amount put down by a buyer to demonstrate their serious intent to purchase a property. This deposit signals to the seller that the buyer is committed to completing the transaction, and it can serve as a partial payment toward the purchase price.

Good faith deposits are typically held in escrow and can be applied toward the buyer’s down payment or closing costs if the sale proceeds. If the buyer backs out of the deal without a valid reason as defined in the contract, the seller may be entitled to keep the deposit as compensation for taking the property off the market.

In contrast, closing costs refer to the fees and expenses incurred during the finalization of a real estate transaction, security deposits typically relate to rental agreements rather than sales transactions, and final payments refer to the remaining balance due at closing. Therefore, "good faith deposits" is the term that aligns most closely with the concept of a deposit in the context of real estate.