Contracts
An earnest money deposit that is 'at risk' means:
AThe funds are deposited in a risky investment
BThe buyer may forfeit the deposit if they default on the contract✓ Correct
CThe deposit is held by an unlicensed party
DThe broker is personally liable for the deposit
Explanation
When earnest money is 'at risk,' the buyer faces losing the deposit if they fail to complete the transaction without a valid contractual reason to cancel.
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