HOLDING
DEPOSIT
Sometimes
a holding
deposit
is paid before exchange.
A holding deposit is not at risk of being forfeited until after
exchange of agreements. Legally, a holding deposit does not hold the
property but it mostly does mean the agent who has the holding
deposit will not show the house to anyone else. The receipt should
describes the payment as a holding
deposit
and also says “Subject
to agreement"
or "Subject
to contract'.