Contracts
Earnest money in an Arkansas real estate contract is best described as:
AA required nonrefundable deposit
BA good-faith deposit demonstrating the buyer's intent to purchase✓ Correct
CThe commission paid to the broker
DA fee paid to AREC
Explanation
Earnest money is a good-faith deposit made by the buyer to demonstrate their serious intent to purchase the property. It is held in escrow and applied to the purchase price at closing.
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