During the inspection of the plot and house, the buyer usually gives an advance payment (or deposit) to the seller and concludes a preliminary contract. Thus the buyer confirms his interest in the future transaction and before its conclusion checks the documents on the object of sale and the seller himself.
The receipt confirms the transfer of funds (advance payment) by the buyer to the seller, which is set off against payment of the purchase price under the contract of sale of real estate.
The advance does not have a security function and has a refundable nature.
Unlike a deposit, the advance is subject to return to the buyer in case the buyer or another party fails to conclude a contract of sale in the future.