In real estate, EMD stands for “Earnest Money Deposit.” It is a deposit made by a buyer to show that they are serious about purchasing a property. The EMD is typically a percentage of the purchase price and is held in an escrow account until the closing of the transaction. At the closing, the EMD is applied toward the down payment and closing costs. If the buyer fails to close the transaction, the seller may be entitled to keep the EMD as compensation for the time and effort spent on the transaction.