Down payment

Learn about the definition for this legal term.

What is Down payment?

A sum of money that is put down at the time of the signing of an agreement of sale for real estate. This amount is usually held in escrow by the broker or the attorney and is deducted from the balance of the price owed by the buyer at the time of final closing on the transaction.

Further Reading

For more detailed information, see our related Real Property terms:

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