What is down payment?
The down payment is an amount of money or goods that are delivered as a guarantee when making a sales contract. It is a sign of commitment between the buyer and the seller. If the buyer decides to withdraw from the agreement without good cause, he may lose the earnest money.
On the other hand, if the seller breaches the contract, he must return double the down payment to the buyer. Down payment is intended to ensure compliance with the contract and may vary in its form and value, depending on the agreement between the parties.