Escrow & Title
Earnest money is typically applied at closing as:
AA payment directly to the broker
BA credit to the buyer against the purchase price or closing costs✓ Correct
CA reserve fund held by the title company
DA deposit that is forfeited in all cases at closing
Explanation
Earnest money is credited to the buyer at closing, reducing the amount of cash the buyer needs to bring to closing. It is applied against the purchase price, down payment, or closing costs.
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