Contracts
What is the purpose of an earnest money deposit in an Arizona purchase contract?
ATo pay the buyer's agent's commission
BTo demonstrate the buyer's good faith and intent to complete the transaction✓ Correct
CTo fund the buyer's down payment directly
DTo compensate the seller for taking the home off the market
Explanation
Earnest money demonstrates the buyer's good faith and seriousness about purchasing the property. It is applied toward the purchase price at closing and may be forfeited or returned depending on how the contract terminates.
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