what is emd in auction

EMD stands for Earnest Money Deposit, which is a deposit made by the potential buyer to show their sincerity and seriousness in purchasing the property in an auction. The deposit is typically a percentage of the reserve price, which is the minimum price the seller is willing to accept for the property. The EMD serves as a guarantee that the buyer will follow through with the purchase if they win the auction. The amount of the EMD varies based on the propertys value, with higher-value properties requiring a higher EMD. EMD is used in various types of auctions, including bank auctions and property auctions. If a bidder is not successful in the auction, the bank or seller will return the EMD to the bidder. The EMD is a refundable amount that is submitted by the bidder along with their bid, and it is used to ensure that only serious bidders participate in the auction.