Contracts
An 'earnest money deposit' in a Connecticut real estate transaction is best described as:
AThe buyer's down payment held by the lender
BA good-faith deposit that demonstrates the buyer's serious intent to purchase✓ Correct
CThe broker's commission paid in advance
DA fee charged by the title company
Explanation
An earnest money deposit is a sum paid by the buyer to demonstrate good faith and serious intent to purchase. It is held in escrow and applied to the purchase price or closing costs at closing.
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