Final answer:
An Earnest Money Deposit (EMD) is a sum of money paid by a buyer to a seller as a show of good faith in a real estate transaction. If you have already placed a deposit with the builder, then the EMD has already been made. By making an EMD, you are demonstrating your seriousness and commitment to purchasing the property.
Step-by-step explanation:
The acronym EMD stands for Earnest Money Deposit. An Earnest Money Deposit is a sum of money paid by a buyer to a seller as a show of good faith in a real estate transaction.
In the context of this question, if you have already placed a deposit with the builder, then the EMD has already been made. The EMD is typically held in an escrow account until the closing of the transaction.
By making an EMD, you are demonstrating your seriousness and commitment to purchasing the property. If the transaction is successfully completed, the EMD is usually applied towards the purchase price of the property. However, if the deal falls through due to certain contingencies or breaches of contract, the EMD may be subject to forfeiture.