When is a buyer typically required to provide earnest money?

A buyer is typically required to provide earnest money when making an offer on a property. This earnest money serves as a demonstration of the buyer's serious intent to purchase the property. By submitting this deposit along with their offer, the buyer signals to the seller that they are committed to the transaction, which can make their offer more attractive in a competitive market.

This practice is a common component of real estate transactions, as it helps to establish good faith between the buyer and seller. The earnest money is usually held in an escrow account and applied toward the buyer's closing costs or down payment at the conclusion of the sale. It reflects the buyer's commitment to proceeding with the purchase after their offer is accepted.

The other options do not align with standard practices in real estate transactions. Providing earnest money at closing would not be practical, as it is intended to secure the offer rather than finalize the agreement. Similarly, earnest money is not required when signing a lease, as that process typically involves a different set of agreements and deposits. Waiting until after the inspection period ends would undermine the purpose of earnest money, which is to establish sincere intent from the outset of the negotiation process.