Contracts
In a real estate sales contract, 'earnest money' is best described as:
AThe commission paid to the listing agent
BA deposit made by the buyer to demonstrate good faith and intent to purchase✓ Correct
CThe down payment required by the lender
DA fee paid to AREC at closing
Explanation
Earnest money is a good-faith deposit paid by the buyer when making an offer, demonstrating serious intent to purchase. It is typically applied toward the purchase price at closing.
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