Contracts
What is 'earnest money' (good faith deposit) in a Delaware real estate transaction?
AThe down payment paid at closing
BA deposit paid by the buyer demonstrating their serious intent to purchase, held in escrow until closing✓ Correct
CA fee paid to the broker upon listing
DThe first month's mortgage payment
Explanation
Earnest money (good faith deposit) is a sum of money paid by the buyer when the purchase contract is signed to demonstrate serious intent. It is held in escrow and typically applied to the purchase price at closing.
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