Contracts
In Florida, 'earnest money' serves what primary purpose in a real estate contract?
ATo pay the broker's commission at closing
BTo demonstrate the buyer's good faith and to provide the seller with some assurance of buyer performance✓ Correct
CTo fund the title insurance policy
DTo cover the home inspection costs
Explanation
Earnest money (binder deposit) demonstrates the buyer's good faith intention to complete the purchase. It provides the seller with a measure of security that the buyer will perform, and it may serve as liquidated damages if the buyer defaults.
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