Caparra

Caparra is a term used in legal and real estate contexts, originating from Spanish, meaning a deposit or earnest money paid upfront during a transaction. It serves as a security for the seller, indicating the buyer's serious intent to purchase. If the buyer proceeds, the caparra is often credited toward the purchase price. If the buyer backs out without valid reason, they may forfeit the deposit. Conversely, if the seller fails to fulfill the agreement, they might have to return double the amount. Essentially, caparra protects both parties by confirming commitment and providing a monetary guarantee.