Contracts
Earnest money in an Alabama real estate transaction is:
ARequired by law for a contract to be valid
BEvidence of the buyer's good faith but not required for contract validity✓ Correct
CAlways forfeited if the buyer does not close
DPaid directly to the seller at the time of offer
Explanation
Earnest money is not legally required to form a valid contract in Alabama, but it demonstrates the buyer's good faith and is common practice.
Related Alabama Contracts Questions
- In a real estate contract, 'consideration' most commonly takes the form of:
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- A contract that is 'void' is:
- In Alabama, which party typically prepares the deed in a residential real estate transaction?
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- A buyer makes an offer to purchase a home. The seller responds by changing the price. This response is a:
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