Contracts
In Connecticut, an 'earnest money deposit' in a real estate contract serves primarily as:
AA non-refundable fee paid to the broker
BEvidence of the buyer's good faith and intent to complete the purchase, held in escrow✓ Correct
CThe buyer's down payment that goes directly to the seller
DA fee that automatically compensates the seller if the buyer backs out
Explanation
Earnest money (or a good faith deposit) is held in escrow and demonstrates the buyer's serious intent to purchase. The disposition of the earnest money if the contract falls through depends on the specific contract terms and reason for the failure.
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