Earnest money is one of many opportunities for buyers to convey how serious they are about buying a particular house. Earnest money is a deposit made to a seller that represents a buyer's good faith to make a purchase such as the acquisition of a new home.An escrow holdback becomes the easy solution for completing the transaction, while pushing an issue like possession or repairs to a later date. While due diligence money is nonrefundable, earnest money is refundable but only if the buyer decides not to buy the home. Earnest money is essentially a good faith payment which shows the seller that you are serious about buying their home. It's also part of your down payment. Most contracts include a due diligence deadline anywhere from seven days to two weeks after the agreement date.