Which term refers to a preliminary agreement for the sale of a property, often secured by a deposit from the buyer?

A binder is indeed the correct term for a preliminary agreement for the sale of a property that is often accompanied by a deposit from the buyer. This document serves to hold the property while the buyer and seller work toward finalizing the sale, essentially "binding" both parties to the agreement for a specified period. The binder secures the buyer’s interest in the property and provides assurance to the seller that the buyer is serious about the transaction.

In contrast, a letter of intent is generally less formal and outlines the preliminary understanding between parties regarding a transaction, but it does not usually include a deposit or serve as a binding agreement. A purchase agreement is a more comprehensive document that finalizes all the terms of the sale, typically after the binder stage. An options contract gives a buyer the right, but not the obligation, to purchase a property at a set price within a certain timeframe, but it does not generally involve an immediate deposit like a binder would. Hence, the binder stands out as the appropriate term for the initial agreement with a deposit to secure a property sale.