Earnest money deposit — the refundable sum you place to take part in a bank auction.
How it works and what to check
In a bank auction of a repossessed property, bidders pay the EMD with their bid, typically a percentage of the reserve price set in the sale notice. The losing bidders get it back; the winner's EMD counts towards the price.
If the winning bidder fails to pay the balance on time, the notice usually lets the bank forfeit the EMD. Read the sale notice for the amount, the deadlines and the payment method.
Common questions
Is the EMD refunded if I lose the auction?
Yes, to unsuccessful bidders, in the way the sale notice describes.
How much is the EMD?
It is set in each auction notice, usually as a share of the reserve price.